Blog: Reflation Expectations on the Rise

There was an important omission in the FOMC's January 29th announcement. In previous announcements they always said that "Inflation has made progress toward the Committee's 2 percent objective . . ." but not this time. In confirmation the Reflation Expectations Indicator (RECI) shifted from Disinflation to Reflation at the end of last week. The shift to Reflation has been building for some months, but recent events appear to have accelerated the trend.