Price growth will hot up in near term, but 1970s-style boom is unlikely

The US break-even curve, which tracks investors’ forecasts for inflation, has flipped upside down, with short-term rates eclipsing their long-term counterparts.

This previously happened on a sustained basis in 2008, during the global financial crisis. 

Powell recently argued that any jump in inflation would be “neither large nor sustained” and underscored that the economy is still a long way off from the US central bank’s goal of average 2 per cent inflation. 

FT 12 March 2021

https://www.ft.com/content/4b39a372-1924-4839-b931-c6773b251968