Everyone is starting to think "it will be more expensive in the future,"

The Federal Reserve's biggest fear is happening.
Let's start with a core concept:
The Federal Reserve has been betting on one thing:
Everyone believes "inflation will come down."
But now the problem is emerging:
More and more people are starting to feel:
Oil prices are rising,
Things are getting more expensive,
And they might get even more expensive in the future.
This feeling is called
"Inflation expectations spiraling out of control."
Why did it suddenly change?
The reason is simple:
Recently, these events have occurred:
Oil prices surged over 50% in one month,
Conflicts in the Middle East escalated,
Oil prices rise → cost of living increases,
As a result,
People start to doubt that "inflation will come down."
Why is this a serious issue? (Key point)
Because,
Once everyone thinks "it will be more expensive in the future,"
A chain reaction will occur:
Employees: I want a raise,
Companies: Then I’ll raise prices,
Consumers: Buy in advance quickly,
In the end, 👇
Inflation really becomes higher (self-fulfilling).
🧵 Summary:
The most frightening thing about inflation is not that it is already high,
but that "everyone starts to believe it will stay high."
The harshest part of inflation is not price increases,
but that you start to believe it won't come down.
Once everyone thinks this way,
Prices truly won't go down anymore. 😅
And now,
Federal Reserve Chair Jerome Powell delivered a speech today,
The global markets are watching closely, trying to find a hint of a rate cut in his words.
Image: Federal Reserve, Federal Reserve Bank, Washington D.C.
The building on Constitution Avenue, near the National Mall, the Marina S. Ecker Building. $BTC