Household spending stepped up in mid-April, coinciding with the first disbursement of stimulus payments to households and a ramp-up in the payout of unemployment benefits, and showed the most pronounced increases in the states that received more benefits.9 With some of the fiscal support measures either provided as one-off payments or slated to come to an end in July,  inflation compensation over the next few years have retraced much of their sharp declines in mid-March but remain below their typical ranges in recent years.
The 5-to-10-year measure of longer-term inflation compensation derived from Treasury Inflation-Protected Securities, at around 1.4 percent, remains notably below pre-pandemic levels.