We study how different forms of communication influence inflation expectations in a randomized controlled trial using nearly 20,000 U.S. individuals. We elicit individuals’ inflation expectations in the Nielsen Homescan panel then provide eight different forms of information regarding inflation. Reading the actual Federal Open Market Committee (FOMC) statement has about the same average effect on expectations as simply being told about the Federal Reserve’s inflation target. Reading a news article about the most recent FOMC meetings results in a forecast revision which is smaller by half. Our results have implications for how central banks should communicate to the broader public.

More on this topic

BFI Working Paper·Apr 10, 2025

Asylum Seekers and the Rise in Homelessness

Bruce Meyer, Angela Wyse, and Douglas Williams
Topics: Economic Mobility & Poverty
BFI Working Paper·Apr 7, 2025

Non-User Utility and Market Power: The Case of Smartphones

Leonardo Bursztyn, Rafael Jiménez-Durán, Aaron Leonard, Filip Milojević, and Christopher Roth
Topics: Financial Markets
BFI Working Paper·Apr 7, 2025

Asset Embeddings

Xavier Gabaix, Ralph Koijen, Robert J. Richmond, and Motohiro Yogo
Topics: Financial Markets