SF Fed Newsletter

Learn more about what’s happening in the Twelfth District

Economic Letter

Inflation Expectations, the Phillips Curve, and Stock Prices

During the 1970s and early 1980s, rises in inflation tended to coincide with weaker economic activity and lower stock prices. But in more recent decades, rises in inflation have tended to coincide with stronger economic activity and higher stock prices. This pattern where inflation, economic activity, and stock prices all move together can be traced to improved anchoring of inflation expectations.

The SF Fed’s Commitment to Equity

The San Francisco Fed is dedicated to building an economy that works for everyone and helping ensure all Americans—regardless of gender, race or ethnicity, geography, ability, or socio-economic status—have the opportunity to fully realize their potential.