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Education | How would a change in inflationary expectations affect nominal interest rates and the yield curve?
![Suppose the expected and actual inflation rates are 7 percent and the natural rate of unemployment is 6 percent. If the inflation rate falls to 5 percent and the expected inflation rate Suppose the expected and actual inflation rates are 7 percent and the natural rate of unemployment is 6 percent. If the inflation rate falls to 5 percent and the expected inflation rate](https://study.com/cimages/multimages/16/t555555099960127352858883.png)
Suppose the expected and actual inflation rates are 7 percent and the natural rate of unemployment is 6 percent. If the inflation rate falls to 5 percent and the expected inflation rate
![Education | How would a change in inflationary expectations affect nominal interest rates and the yield curve? Education | How would a change in inflationary expectations affect nominal interest rates and the yield curve?](https://www.frbsf.org/education/files/drecon_0408d.gif)
Education | How would a change in inflationary expectations affect nominal interest rates and the yield curve?
![Jump in US inflation expectations not yet suggesting sustained rebound | S&P Global Market Intelligence Jump in US inflation expectations not yet suggesting sustained rebound | S&P Global Market Intelligence](https://www.snl.com/articles/406510657.png)