A good question for an economics test and also interviews for an economics or finance job:

The US economy has entered its sixth consecutive year in which inflation has consistently exceeded the Federal Reserve's target, and not just by a little.

Until recently, however, markets have largely turned a blind eye to this trend, and long-term inflation expectations have remained remarkably stable.

How can we explain this historical anomaly, and what are the most probable paths forward from here?

#economy #markets #inflation