New Expectations Estimates From the Cleveland Fed

The Federal Reserve Bank of Cleveland has put together some interesting new data on market expectations, including the following model of 10-year inflation expectations:

As you can see, it makes sense for policymakers to be more worried about inflation than they were 12 months ago, but less worried than they were three years ago. Or four years ago. Or five years ago. Or six years ago. Or seven years ago. Or eight years ago. Or nine years ago. Or ten years ago. Or, indeed, at any point dating back for decades. Given low inflation, high unemployment, low growth, and basically the lowest inflation expectations ever it would make an enormous amount of sense for the Fed to go out and monetize some debt.