That is the third leg of inflation. It is fairly well known that one of the predictors of future inflation is the belief in it - - a self-fulfilling prophecy.

That is the third leg of inflation. It is fairly well known that one of the predictors of future inflation is the belief in it - - a self-fulfilling prophecy. The Fed does not have any tools to address businesses who take advantage of people believing that the prices should be higher to raise their price and in the short term their profit. The fed has one Cannon to use, reduce or expand the money supply, and it only hits one of the three sources for inflation