Politico released a poll this morning with these alarming results: --- Almost half — 46 percent — say the cost of living in the U.S. is the worst they can ever remember it being, a view held by 37 percent of 2024 Trump voters. Americans also say that the affordability crisis is Trump’s responsibility, with 46 percent saying it is his economy now and his administration is responsible for the costs they struggle with. --- You would be correct to say the rate of inflation was worse in 2022, when it hit 9%, but I think the poll respondents are answering a different question: they're talking about the cumulative rise over the last five years. And on this front, you'd have to go back 45 to 50 years to remember a worse time, so those under 60 (or 55) are correct. I would argue this is a textbook definition of unanchored inflation, the very thing that keeps central bankers awake at night. These results should equally alarm the Federal Reserve, as inflation is its mandate. Jay Powell mouthing the words "inflation expectations remain well contained" at next week's press conference does not make this go away. In fact, it might anger the public that he doesn't care. I really want to explain in great detail why they think that, to fix this problem, they need to cut rates.(Jim Bianco)