One thing is clear following the pandemic. There is pent-up demand for everything from “revenge-travel” to consumer spending on consumables in spite of shortages on materials that impede production and distribution. In spite of a spike in consumer prices, the Fed is so far holding firm on its belief that the current inflation is transitory. But, investors should beware. It’s worth digging into the data and not assume the Fed is correct in its standing. The Minneapolis Fed calculates that the implied probababilty of inflation averaging above 3% for the next five years has fallen from a high of 44% a month ago to 31% now.

For more on this topic, read this article in the Wall Street Journal: