This article suggests US inflation expectations are unambiguously on an upward trend and are being put at risk to preserve Alan Greenspan's legacy. It is with some irony, it says, that the next Federal Reserve Chairman is likely to follow a more traditional approach to monetary policy, more akin to the European Central Bank, while European politicians are urging the ECB to be more like Mr Greenspan's Fed.

Published as State Street Investment Letter, No. 4 by Professor Avinash Persaud, State