Wall Street and the Federal Reserve have been wrong about a lot of things over the last few years. And now it looks like they’re going to beOur era of errors begins in 2021, when the Fed and Wall Street’s economists saw the inflationary surge as. Two years later, the Fed’s economists and its own officials largely agreed with the financial sector’s view that athis year and Wall Street forecast five—only to see those forecasts dashed by resurgent inflation in the first quarter of this year.
“One pertinent theoretical mechanism is that high inflation makes workers more likely to realize that their wage growth has not kept pace with inflation, and thus they are more likely to demand wage increases in response to recent inflation;inflation now weighs much more heavily on consumer sentiment
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