A comeback in inflation is no less likely because it has been absent for the past 30 years

Fed has signalled it will tolerate an overshoot of the target for a period of time to compensate for persistently low inflation.

The risk, as I see it, is that inflation could overshoot the overshoot levels the Fed is comfortable with.

To date, US households have lost $490bn in income but have received $1.3tn in transfers. The total amount of transfers will undoubtedly rise with the passage of the next fiscal stimulus package.

Chetan Ahya FT 10 March 2021

The writer is chief economist at Morgan Stanley

https://www.ft.com/content/e8d6b6e6-1f19-473e-a1c5-fbe077615e0f