How Central Banks Use Inflation Expectations Surveys

Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates · Jul 21, 2026 · 10m · transcript

In Episode 124 of Monetary Policy Explained with Fexingo, Lucas and Luna explore how central banks rely on inflation expectations surveys — from the University of Michigan Survey of Consumers to the Survey of Professional Forecasters. They discuss why the Federal Reserve watches the 5-year-5-year-forward breakeven rate, how expectations became de-anchored in the 1970s, and what the latest July 2026 data signals for the Fed's next move. The conversation also covers the difference between household and professional expectations, and how the ECB uses its Consumer Expectations Survey. Packed…