Natwest Chairman Davies Is Pessimistic on 'Embedded' Inflation

The transcript discusses the global economic outlook, focusing on the UK economy and inflation concerns. It highlights the challenges the Bank of England faces in controlling inflation and the potential need for aggressive strategies. The feasibility of achieving a 2% inflation target is questioned, with suggestions to aim for 3-4% initially to avoid severe economic consequences.

According to the speaker, what might be the consequences of trying to reduce inflation to 2% next year?

What does the speaker imply about changing inflation expectations?