Abstract
This paper analyzes the relationship between trust, credibility, the Federal Reserve (“Fed”), and inflation expectations in the United States. The analysis uses data from a new, representative survey. I show that perceptions of the Federal Reserve’s performance and reliability contribute to general trust in the Fed while perceptions of the institution's representation and transparency exhibit comparatively weaker effects. Economic and financial knowledge, gauged by familiarity with the collapse of Silicon Valley Bank and the Fed’s status as independent, also emerges as a crucial determinant of trust. My findings suggest that trust in the Fed is a significant predictor of anchored inflation expectations thus the Federal Reserve must focus on improving the public's perceptions of its performance and reliability, as well as work on expanding knowledge of the institution through non-traditional channels.