On March 27, Musalem, the Federal Reserve Chair of St. Louis, stated that inflation might be higher than expected, and economic growth could be lower than anticipated. This situation presents some challenges for monetary policy due to potential tensions between dual mandates. If inflation expectations begin to rise, the Federal Reserve may need to pay more attention to its inflation target.

Stagflation is a more extreme scenario than what the United States might experience in the coming months. He does not believe an economic recession is imminent. Inflation is expected to fall to 2% by 2027. (Jinshi)