diff --git a/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_setup.m b/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_setup.m
index c4273c357..4664d627d 100644
--- a/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_setup.m
+++ b/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_setup.m
@@ -115,6 +115,24 @@ else
     end
 end
 
+%% Compute the terminal steady state for all informational periods
+oo_.pfwee.terminal_steady_state = NaN(M_.endo_nbr, periods);
+orig_exo_steady_state = oo_.exo_steady_state;
+for p = 1:periods
+    if p > 1 && all(oo_.pfwee.terminal_info(:, p) == oo_.pfwee.terminal_info(:, p-1))
+        oo_.pfwee.terminal_steady_state(:, p) = oo_.pfwee.terminal_steady_state(:, p-1);
+    else
+        if p == 1
+            init = oo_.steady_state;
+        else
+            init = oo_.pfwee.terminal_steady_state(:, p-1);
+        end
+        oo_.exo_steady_state = oo_.pfwee.terminal_info(:, p);
+        oo_.pfwee.terminal_steady_state(:, p) = evaluate_steady_state(init, M_, options_, oo_, true);
+    end
+end
+oo_.exo_steady_state = orig_exo_steady_state;
+
 % Build initial paths for endos and exos (only initial conditions are set, the rest is NaN)
 if isempty(ys0_)
     oo_.endo_simul = [repmat(oo_.steady_state, 1, M_.maximum_lag) NaN(M_.endo_nbr, periods+M_.maximum_lead)];
diff --git a/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_solver.m b/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_solver.m
index 8deee7efb..fdbdda3ce 100644
--- a/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_solver.m
+++ b/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_solver.m
@@ -42,8 +42,7 @@ end
 while info_period <= periods
     % Compute terminal steady state as anticipated
     oo_.exo_steady_state = oo_.pfwee.terminal_info(:, info_period);
-    steady_state_prev = oo_.steady_state;
-    [oo_.steady_state,~,info] = evaluate_steady_state(steady_state_prev, M_, options_, oo_, true);
+    oo_.steady_state = oo_.pfwee.terminal_steady_state(:, info_period);
 
     if options_.pfwee.constant_simulation_length && increment > 0
         endo_simul = [ endo_simul NaN(M_.endo_nbr, increment)];
diff --git a/preprocessor b/preprocessor
index 6509bc7d3..32761173e 160000
--- a/preprocessor
+++ b/preprocessor
@@ -1 +1 @@
-Subproject commit 6509bc7d3651d7b82adbf4ca53042dbefe6fe7fb
+Subproject commit 32761173e00e7e40932341de36507707c16a9311