Longer-term inflation expectations have moved much less than actual inflation or near-term expectations, suggesting that households, businesses, and market participants  The way the CIE combines the underlying measures means that it will tend not to be affected by underlying movements that are unique to individual measures; the CIE will reflect movements that are more common across underlying measures.
Especially in the US, which has followed  BIS Review 28/2004  3  an expansionary monetary policy in the last few years, a rise in interest rates may have a strong cumulative impact on growth. Though such a development would help reduce the current account deficit it will certainly make fiscal consolidation in the US even more difficult.