Inflation may look like it will go away but is more likely to persist and lead to a crisis in the years ahead, according to Deutsche Bank.
price indices are well above the Fed's 2% inflation goal. Policymakers say the current rise in inflation is temporary and will abate once supply disruptions and base effects from the early months of the pandemic crisis wear off.
patience is due to the fact that the Fed's priorities are shifting towards social goals, neglecting inflation leaves global economies sitting on a time bomb," Folkerts-Landau said. "The effects could be devastating, particularly for the most vulnerable in society."To be sure, the Deutsche position is not widely held by economists.
On price pressures in general, Hatzius said that much of current spike is being driven by "the unprecedented role of outliers" that will ebb and bring levels back closer to normal.
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