A note for caution on market-based inflation expectations ...Middle East

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Rising survey-based inflation expectations have been a new thing in 2025 and started to attract the attention from traders and policymakers. They are getting dismissed citing market-based inflation expectations which have been stable just a bit above 2%.

Markets tend to remain anchored near the 2% level because of the Fed's inflation target unless there are black swan events that push them lower. As many successful traders know though, markets are not always right, so we shouldn't take market-based expectations for granted and always have an open mind on the next potential path.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

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