Inflation psychology is being jolted back to life

BloombergOpinion/John Authers/5-17-2021

“In inflation, as in many other areas of economic life, perceptions can form reality, and that is certainly true of inflation. That is why the Federal Reserve wants to see expectations ‘well-anchored.'”

USAGOLD note: The Fed will make every attempt to control the narrative on inflation, but it cannot control what people think and how they react financially and economically to their perceptions – and that includes money managers as well as consumers. The price of gold was jolted back to life along about the time inflation psychology suffered the same fate.