•  Lockhart expects the annual rate of GDP growth for the second half of the year to be around 4 percent, which is strong growth. •  Another reason for optimism, says Lockhart, is that there was more improvement in labor markets in 2014 than in any other year of the recovery.
These breakeven inflation measures from the Treasury InflationProtected Securities market are referred to as “market based” measures of inflation compensation. Survey measures give us an idea of what the average household expects inflation to be in the coming years. Presumably, this measure of expectations is important because it should influence households’ wage demands as they seek compensation for an increasing cost of living.