Why Have Wall Street Expectations Taken a Nosedive?

The video discusses the Federal Reserve's challenges in managing inflation, with $4 trillion invested in stimulating the economy. Despite efforts, inflation rates have fallen, impacting consumer behavior and market expectations. Global deflation fears are overshadowing positive economic data, leading to volatility. The Fed's potential rate hikes could further affect inflation and market stability. The importance of aligning Fed forecasts with market expectations is emphasized to maintain credibility and avoid past market disruptions.

What concerns do Fed officials have regarding inflation as a lagging indicator?

What potential market reactions could occur if the Fed loses credibility?