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Dario Perkins raises a concern increasingly voiced by investors: whether experiencing five years of inflation above target levels is already too lengthy, especially amid the recent energy shock.
Perkins notes that some in the investment community are evaluating if this latest energy disruption could be the tipping point for broader economic issues related to persistent inflation.
Perkins previously noted that after the 1990 oil price surge, only one central bank raised rates in response to a major fiscal stimulus. In a separate commentary, he observed that FOMC members made limited forecast changes even as a downturn worsened and Greenspan denied a recession. These earlier remarks offer context for current concerns about inflation persistence.