AI Data Insight
In September 2026 (Q3 2026), the US University of Michigan (UMich) 1-year inflation expectations climbed to 4.6%, significantly higher than the previous value of 4.3%. Accompanied by Middle East geopolitical conflicts driving up oil prices and trade war concerns, the consumer sentiment index plummeted to 48.1. If inflation expectations continue to become a self-fulfilling prophecy, the Federal Reserve may face a dual policy dilemma between fighting inflation and safeguarding the economy.