The Fed and the Administration Moved Away From Transitory Inflation

For most of last r now, the transitory argument was that this particular inflation was driven by particular dislocations in the wake of covet shutdowns. But market participants didn't expect to see a shift from quantitative easing and balance sheet increases to quantitative tightening and balance sheet reduction on the menu as quickly as the fed seemed to think it was coming. In short, the situation was different. We started to see a rise in consumer price inflation in a way that we hadn't in the aftermath of g f c. This is what begat the transitory narrative of inflation that was pushed by the fed and administration officials for most of last year.

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