Between survey- and market-based sources, the advantage of the former is that they report the genuine expectations of participants directly, while the latter, as just mentioned, are always influenced by risk premia, which complicate their interpretation. While inflation risk premia can be estimated on the basis of theoretical models, the uncertainty that surrounds these estimates is usually non-negligible.
The U.S. Financial System and Economic Outlook U.S. financial markets and institutions remain resilient even though financial stability risks and vulnerabilities in the U.S. financial system have increased since the recent stress events. Conditions in the banking sector have stabilized thanks, in part, to decisive emergency actions taken in March by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Treasury.