On November 8, Ellen Hazen, chief market strategist of Putnam Investment Management Company, stated that the main concern is that many of the policies recently announced are likely to cause inflation. During the upcoming press conference, Federal Reserve Chair Jerome Powell will be asked whether he will start focusing on policy instead of data, to avoid being left behind the curve.
The neglect of fiscal policy in 2021-2022 could have led to unexpectedly high inflation, which might have been prevented if fiscal policy had been addressed earlier.
