Fed Chair Jay Powell referred to inflation expectations while he dismissed actual inflation data. That made no sense. Why would someone ignore actual data and focus on a prediction, one that turned out to be an extremely erroneous?
Jay eventually retired the term transitory but the Fed's obsession with inflation expectations continues. It plans to do strategic surveys where households will be presented with different economic scenarios. The Fed plans to monitor household changes in long-run inflation expectations based on those scenarios.
This sounds like the perfect application for the Fedaverse. Load up study subjects with digital currency and inflate away food, medicine, rent and gas prices. Let people with no real world money put part of their 401k in private equity. What grows faster, their costs of daily living or their Fedaverse retirement fund?
Strategic surveys purport to show a "causal interpretation." Horse hockey. They will have little relation to the real world as they further the Fed's inflation avoidance policy.
"The point is, some people are just really in a—prone to suffer more."--Fed Chair Jay Powell
The Fedaverse can build that in. Come on it, the suffering is fine.
