Key insight: One of the Federal Reserve's preferred methods for gauging inflation expectations painted an improving — if not quite optimistic — outlook on inflation expectations. One of the Federal Reserve's preferred methods for gauging inflation expectations painted an improving — if not quite optimistic — outlook on inflation expectations. Expert quote: "The ability to look through supply shocks depends, in part, on inflation expectations and underlying inflation. — Anna Paulson, president of the Federal Reserve Bank of Philadelphia"The ability to look through supply shocks depends, in part, on inflation expectations and underlying inflation. Fed officials have characterized inflation expectations, as measured by the New York Fed's consumer expectations survey, as being "well anchored."