It is now abundantly clear to most investors that the Federal Reserve in the US has underestimated inflation and fallen significantly behind the curve. The same comment can be made for most developed world central banks in differing degrees. Inflation is a problem across the world and this genie will not go back into its bottle easily.
Over the past 12 months, inflation expectations have been consistently too low, and each new data point has forced the consensus to raise forecasts. This pattern is especially pronounced in the US. This raises the dangerous spectre that current forecasts for much higher inflation
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