US inflationary expectations picking up

The US headline inflation rate has come down sharply following the collapse of GDP and the sharp rise in unemployment. However, no one expects inflation to stay low for long. According to the University of Michigan's monthly survey, inflationary expectations bottomed out in January, and they have been rising ever since.


Quantitative easing, the near-zero federal funds rate, and the massive Obama deficit make for the perfect inflatioanary recipe.