Chicago Fed President Austan D. Glusby There's not much evidence that inflation is stalling at 3%

Chicago Federal Reserve Bank President Austen Dean Goulsby said that while the inflation rate had risen to close to 10% during this time, long-term inflation expectations did not rise, and the market remained positive.

In a question and answer session held at the Economic Club in Minnesota, an American economist stated that every time the inflation rate actually rises, expectations for the inflation rate in 2, 5, and 10 years have also risen, making the central bank's job to eliminate inflation doubly difficult.

In 1979/10, the tightening policy of former Federal Reserve Chairman Paul Volcker drove down demand, the credit of companies and individuals became expensive, and the American economy slowed down.

The current difficulty is that the Fed “needs to overcome the fact that everyone thinks inflation will remain high and assumes that.

It's a pretty cruel process for the economy. “There was a basic sense that the market believed. The Federal Reserve said it would “return to 2%.” And the market believed it.

He repeated that what is important is long-term expectations, and short-term expectations are market-based guidelines, and that they reflect “what was seen in the first two or three months of this year, that is, the inflation rate rose more than expected in the event of a collision.”

However, despite hitting a bump, the broad view is that inflation is not taking off. There isn't much evidence so far that inflation has stagnated at 3%.