There isn´t much doubt or debate about it, and the Fed is poorly prepared!
Inflation is going to head up this year — on that there isn’t much debate.
Major central banks’ fixation on inflation betrays a guilty conscience for serially falling short of their targets. It also raises the risk that in fighting the last war, they will be poorly prepared for the next – the battle against too-high inflation.
In his Testimony, Powell said he wants to see inflation go back to 2%, but does not want to risk “overheating” the economy. Today, he said there are no signs of overheating. If so, why give it so much emphasis?
The picture of (an about) to overheat economy.
Meanwhile, the RGDP “wave” is poised to “splash”.
Footnote: Inflation does not seem to fear falling/low unemployment.