Indicators · Markets and credit

Long-run inflation expectations

Normal

2.33% (+0 basis points over a month), as of 24 Sep 2026.

Expected inflation five to ten years ahead, %

US recessions Periods when this signal was on

What it measures

The inflation rate US markets expect for the five years that start five years from now.

Why it matters

If expectations fall, falling prices make debts heavier and real interest rates rise when they should fall, as in the 1930s. If they rise, markets doubt that inflation will be held down.

When it triggers

Triggers on a large move within a month (at least 0.3 points, more when markets are volatile), or when expectations leave the range 1.5–3%.

Past triggers

Replaying the rule on the data from Jan 1990, it triggered in Jul 2003, Oct 2008, Jun 2016, Feb 2020.

Source: Federal Reserve Bank of St Louis via FRED.