Charles Plosser, the president of the Federal Reserve Bank of Philadelphia, has expressed concern about the recent volatility of inflation expectations.

"A key lesson from the 1970s is the importance of the credibility of the central bank's commitment to maintaining price stability. Once that credibility is lost, it is very difficult to regain, and economic outcomes are worse as a result. Neither I nor my colleagues wish to see that happen again," he said.

"Thus, I am watching inflation