Fed’s Barr: A lot of progress on inflation has been made

Fed Vice Chairman Michael Barr said on Monday that inflation was still too high but acknowledged significant progress had been made. “We are very focused on getting inflation down to target,” Barr said.

Barr’s comments do not directly affect the US dollar’s performance against major currencies. At the time of writing, the dollar index was little changed on the day at 102.25.

US consumer expectations for inflation next year fell for the third month in a row to their lowest level since April 2021. But consumers don’t expect inflation to reach 2% in the next five years, according to The New Paper — the Federal Reserve hits its June 2023 York Fed consumer expectations survey target.

Consumers now expect inflation to reach 3.8%, down from 4.1% in May. However, survey participants expect five-year inflation to be 3.0%, up 0.3 percentage points from the May survey. They expect the three-year inflation rate to be his 3.0%, and see the battle against inflation as stalled.