2026-01-08 16:03:11

The New York Federal Reserve just released December's inflation expectations, and there's a notable shift in the near-term outlook. The 1-year inflation expectation ticked up to 3.42%, marking a meaningful increase from November's 3.20%. That's the most significant movement we've seen recently, signaling that households are pricing in more near-term price pressures.

However, the longer-duration expectations remain anchored. Both the 3-year and 5-year inflation forecasts held steady at 3.0%, unchanged from the previous month. This stability is actually important—it suggests the Fed's communication and recent policy stance are keeping long-term inflation psychology in check, even as near-term inflation jitters resurface.

For crypto traders and investors, this data matters. Higher near-term inflation expectations could reignite volatility and reshape expectations around rate cuts. Keep a close eye on how markets digest this signal—it'll likely influence both traditional assets and digital asset positioning.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

20 Likes

Reward
20
8
Repost
Share

Comment

0/400

DustCollector

· 6h ago

It rose to 3.42 in one year, but we'll have to see how it develops later... Stabilizing in the long term would actually be a good thing.

View OriginalReply0

LucidSleepwalker

· 14h ago

It went up again? The one-year rate jumped from 3.2 to 3.42. This short-term inflation expectation really isn't good news.

View OriginalReply0

GasWhisperer

· 20h ago

mempool's about to get spicy if markets start repricing rate cuts... that 3.42% near-term number is basically the network yelling "congestion incoming" before the actual spike hits. long-term anchored tho? that's the zen part—fed's got the psychological gas fees locked down. watching how this plays out will be like tracking fee patterns before the real wave drops.

Reply0

SurvivorshipBias

· 01-08 16:31

1.42 percentage points jump is a bit fierce; such a surge in short-term inflation expectations feels like something's going to go wrong. 2. Anchoring in the long term is even more terrifying? It indicates that the market actually doesn't believe the Federal Reserve's rhetoric. 3. Here we go again, speculating on rate cut expectations. It's always the same cycle. 4. Wait, is this data higher than in November? Were all those "soft landing" comments just bluffing? 5. Short-term anxiety, long-term calm—this set of data seems quite contradictory. How should we interpret it? 6. The crypto market is about to get restless; every time inflation expectations change, things get unsettled. 7. 3.42... feels like this number will be hyped up by the media again. 8. Long-term anchoring means what? It just means there's more pressure to raise prices now, so wallets need to tighten recently.

View OriginalReply0

ProofOfNothing

· 01-08 16:18

The 1-year inflation expectation has risen to 3.42%, and this wave is indeed a bit intense. The long-term anchoring is still okay, but short-term fluctuations are coming, and the crypto circle needs to get ready.

View OriginalReply0

SybilAttackVictim

· 01-08 16:14

Short-term inflation expectations have risen again, now at 3.42%. This round is going to be turbulent.

View OriginalReply0

SnapshotStriker

· 01-08 16:09

3.42%, climbing again... What is going on with the short-term inflation expectations?

View OriginalReply0

SneakyFlashloan

· 01-08 16:06

The 1-year inflation rate has surged again. Really, as soon as this data comes out, the crypto circle can't sit still. The short-term interest rate cut expectations need to be recalculated. This pace is a bit fast. It's okay if the 3-year and 5-year rates stabilize, otherwise it would really be panic... The interest rate cut dream is about to be shattered again? That's tough. Alright, alright, it's back to watching the Federal Reserve's stance. So annoying. Tomorrow will definitely be another round of chaotic trading... Long-term anchoring is still pretty good, at least not completely messed up, but we need to be cautious in the short term.

View OriginalReply0