This is a exchange is at Goldman Sachs and I'm Allison Nathan, senior strategist in Goldman Sachs Research, and creator and editor of the firm's top of my report. In this episode we're focusing on the

topic on everyone's mind right now, inflation. U.S. inflation has risen to 30 plus your highs and

while much of the recent price rises likely owed a pandemic-related factors that

seem set to unwind, the higher inflation goes, and the longer at last,

the greater the concern that so-called transitory inflation could become more persistent

with potentially large implications for the economy, the Fed, and markets.

So where inflation goes from here is top of mind.

We first speak with Mohammed Al Arian,

president of Queens College, Cambridge University, and Chief Economic Advisor to

Oleons, whose concern that inflationary pressures are changing behaviors on the

ground in ways that could prove more persistent than many observers,

including the Fed, expect.

This is important because the key question

when it comes to inflation concerns

seems to be whether price changes today start to shift people's expectations of

future price changes and if that happens we could be in for an inflationary

spiral which L. R. R. R. R. Y. Y. A. Ad warns may not be well captured by market-based measures of inflation

expectations. Are you worried that the Fed is too optimistic about the inflation outlook?

Yes, I worry.

While the Fed has taken a step away from its narrative of transitory inflation,

and it had no choice because the numbers the trends are very clear.

It's still holding on to this new phenomenon of and pick your phrase

...