The data on consumer inflation expectations are mixed news for policymakers. Neither the level nor the uncertainty surrounding longer-run inflation expectations is nearly as high as in the early 1980s. This is a hopeful sign that the Fed can restore its credibility for promoting price stability. The less hopeful sign is that longer-run inflation uncertainty has been rising steadily, eroding more than a decade of progress. This uncertainty may be part of the reason that consumer confidence has plummeted.