US inflation expectations fell in early September to the lowest levels in more than two years as consumers grew more optimistic about the economic outlook. Consumers expect prices will climb at an annual rate of 3.1% over the next year, down from the 3.5% expected in August, according to the preliminary reading from the University of Michigan. That marked the lowest reading since early 2021. Respondents see costs rising 2.7% over the next five to 10 years, matching the lowest since the end of 2020, data Friday showed. The drop is likely to encourage policymakers at the Federal Reserve and reinforce expectations that ... (full story)