Are US inflation expectations re-anchored?

- Well anchored inflation expectations should not respond to economic news.
- News-regressions with multiple breaks are applied to US break-even inflation rates.
- Expectations have been de-anchored during the financial crisis.
- Our results indicate that expectations have not been re-anchored ever since.

If long-term inflation expectations are well-anchored, they should be unaffected by short-term economic news. This letter introduces news-regressions with multiple endogenous breaks to investigate the de- and re-anchoring of US inflation expectations. We confirm earlier evidence on the de-anchoring of expectations driven by the outbreak of the crisis. Our results indicate that expectations have not been re-anchored ever since.