Federal Reserve's Echo Chamber: Federal Reserve officials believe that inflation expectations may become self-fulfilling.

On March 20, Jinshi Data reported, "The Fed's mouthpiece" Nick Timiraos: The combination of economic growth stagnation and rising prices (sometimes referred to as stagflation) may make it more difficult for the Fed to cut interest rates this year to prevent an economic slowdown. The response of Fed officials may largely depend on whether businesses and consumers expect prices to continue to rise, as Fed officials believe these expectations could become self-fulfilling. If workers, landlords, and business owners expect inflation to remain high, they will arrange their financial decisions in a way that can sustain higher prices. Some surveys attempting to gauge consumer inflation expectations have shown that the uncertainty surrounding the recent inflation outlook has increased or significantly increased.