The June FOMC surprised on the dovish side as policymakers reacted to the unexpected slowdown in the labor market, renewed weakness in market -
based inflation compensations, as well as rising likelihood of a «Brexit» by revising down their SEP «dots.»
Not exact matches
But with that said, the FOMC has stated that «market -
based measures of
inflation compensation remain low».
Inflation compensation rose by 30
basis points to 1.87 percent while the real return, taken from the rate on the 10 - Year Treasury
Inflation Protected Securities (10 - Year TIPS), increased by 19
basis points to 0.46 percent.
The real return on the 10 - Year Treasury Note in 2017 is 185
basis points below its level in 2006 while the
inflation compensation component in 2017 was 61
basis points below its 2006 level.
The Fed rate statement also noted that «market -
based measures of
inflation compensation remain low», a reference to soft wage growth, which is at 2.7 %, lower than the 3 % rate that the Fed would like to see.
Market -
based measures of
inflation compensation remain low; survey ‑
based measures of longer - term
inflation expectations have remained stable.
Market -
based measures of
inflation compensation have declined somewhat; survey -
based measures of longer - term
inflation expectations have remained stable.
Market -
based measures of
inflation compensation declined; most survey -
based measures of longer - term
inflation expectations are little changed, on balance, in recent months.
Market -
based measures of
inflation compensation remain low; most survey -
based measures of longer - term
inflation expectations are little changed, on balance, in recent months.
Market -
based measures of
inflation compensation have moved up but remain low; most survey -
based measures of longer - term
inflation expectations are little changed, on balance, in recent months.
Market -
based measures of
inflation compensation declined further; survey -
based measures of longer - term
inflation expectations are little changed, on balance, in recent months.
Market -
based measures of
inflation compensation have moved up considerably but still are low; most survey -
based measures of longer - term
inflation expectations are little changed, on balance, in recent months.
Personal injury
compensation is calculated using well - established legal principles that involve discounting future losses attributable to the injury to present day values using a discount rate
based on «real» (after price
inflation) investment returns.
Inflation compensation rose by 30
basis points to 1.87 percent while the real return, taken from the rate on the 10 - Year Treasury
Inflation Protected Securities (10 - Year TIPS), increased by 19
basis points to 0.46 percent.
The real return on the 10 - Year Treasury Note in 2017 is 185
basis points below its level in 2006 while the
inflation compensation component in 2017 was 61
basis points below its 2006 level.