Expected inflation has fallen sharply since last summer, and the European Central Bank and the Fed have responded in very different ways. The European Central Bank launched quantitative easing, while the Fed has been biding its time. If businesses, consumers, and investors expect inflation to fall, they will begin to act in a way that will make that happen. Market based measures of inflation, such the difference in yields between regular and inflation-indexed bonds, began to fall last summer with the fall in oil prices. The fed has acknowledged the drop, but instead has placed its trust in the stability of survey-based measures. The Fed also indicated earlier this week that they may raise interest rates sometime in the near future. With conservative language, Yellen noted that the FOMC would take interest rates on a meeting by meeting basis and has relaxed her emphasis on longer term patience. Some analysts predict an interest rate raise by June. Low inflation might undermine the hopes to raise interest rates, as the Fisher effect notes the importance of inflation in determining nominal interest rates.