To your point about inflation expectations - Jay Powell in 2018 "one overwhelmingly important lesson for monetary policymakers: Anchoring longer-term inflation expectations is a vital precondition for reaching all other monetary policy goals."
And it appears the unmooring of those expectations has commenced... "The July 2021 Survey of Consumer Expectations shows that median one-year-ahead inflation expectations were unchanged at 4.8 percent, while inflation expectations at the three-year horizon increased slightly to 3.7 percent. Consumers’ year-ahead earnings expectations posted a fourth consecutive increase to reach 2.9 percent, a new series high.
To your point about inflation expectations - Jay Powell in 2018 "one overwhelmingly important lesson for monetary policymakers: Anchoring longer-term inflation expectations is a vital precondition for reaching all other monetary policy goals."
And it appears the unmooring of those expectations has commenced... "The July 2021 Survey of Consumer Expectations shows that median one-year-ahead inflation expectations were unchanged at 4.8 percent, while inflation expectations at the three-year horizon increased slightly to 3.7 percent. Consumers’ year-ahead earnings expectations posted a fourth consecutive increase to reach 2.9 percent, a new series high.