Throughout 2021, the Fed described inflation as 'largely reflecting transitory factors.' Core PCE projections of 1.8-1.9% were dramatically wrong — actual inflation hit 4.5-4.7%. Annual inflation spiked to a four-decade high of 9.1% in June 2022. Mohamed El-Erian called it 'the worst inflation call in the history of the Fed.' Chairman Powell eventually admitted the Fed was wrong.