Are the Fed's Inflation Expectations Realistic?

Bloomberg Video

October 12 -- A gauge of U.S. inflation expectations from the Federal Reserve, known as the five-year, projects consumer prices will climb at a 1.54 percent annual pace from 2021 to 2026, close to the highest level since May. Policy makers have signaled they want to raise interest rates this year, the first increase since liftoff from near zero in December. The Fed, which will release minutes from its Sept. 20-21 meeting on Wednesday, is looking for inflation to rise to its 2 percent target. Bank of America Merrill Lynch Chief European Economist Gilles Moec discusses with Mark Barton on "Bloomberg Surveillance."