Through most of 2021, the Federal Reserve said that inflation in the U.S. would be “transitory.” But inflationary pressures continued to ratchet up, and the Fed was forced to abandon that descriptor. This misdiagnosis, according to John Cochrane, senior fellow at the Hoover Institution, constitutes “an epic institutional failure.” How did we get here? And what happens when people stop believing the government can service its debt? Cochrane discusses the journey from “transitory” to persistent with Rob Arnott, founding chairman of Research Affiliates. Recorded on January 19, 2022.