6  For instance, 10-year inflation expectations, as measured by the survey of professional forecasters, have remained nearly constant during this period. There is also evidence that inflation expectations at shorter horizons are better anchored today relative to a couple of decades ago.
Economic activity rebounded robustly in the third quarter and has continued to recover in the fourth quarter from its depressed second-quarter level, though the pace of improvement has moderated. Household spending on goods, especially durable goods, has been strong and has moved above its pre-pandemic level, supported in part by federal stimulus payments and expanded unemployment benefits.