On Thursday, the President of St. Louis Fed Alberto Musalea warned that the growing inflation expectations in combination with the risk of stubborn staglation could be a double challenge for the US economy.

Key results

Inflation of certainty returns to 2% of the target needed before further changes in politics; The patient’s approach is appropriate.

Its basis is the return of inflation to 2%, but the risk is warped up.

Inflation expectations increased higher, the fed would hinder the work of the Fed if it is maintained.

There are scenarios in which progress in inflation stalls or inflation rises along with a weakened labor market.