The Fed's View on Inflation

The Fed thinks it will take time that they've gotten the low hanging fruit, and it will take significant time to squeeze the rest of the 2.2% or whatever inflation out of the system. The markets seem to think that it'll go much faster than that. We'll see a big drop in overall inflation over the coming months, either because the Fed is successful, or because we go into a recession. Either way, the market wants to price in rate cuts, and the Fed is disagreeing with that.