In my judgment, monetary policy has, in fact, countered some of the negative forces weighing on the economy. Residential investment has no doubt been buoyed by policy easing, as lower mortgage rates offset the restraint from declines in employment, smaller gains in income, and lower levels of wealth.
At a time when the combined impact of demographic transition and income increases is generating enormous demand for proteins, the supply chain is clearly struggling to meet this demand. To conclude this part of the discussion, let me bring in the issue of inflationary expectations. The persistence and recent acceleration of inflation has clearly increased the risk of expectations becoming unanchored.