Columnist Paul Krugman says that you can relax now. The inflation problem is over.

What these numbers and a growing accumulation of other data, from rents to shipping costs, suggest is that the risk of stagflation is receding....Obviously we’ve had serious inflation problems over the past year and a half. Much, probably most, of this inflation reflected presumably temporary disruptions of supply ranging from supply-chain problems to Russia’s invasion of Ukraine. But part of the inflation surge also surely reflected an overheated domestic economy.

Ah yes, anyone can look at the CPI chart above and see that the inflation problem has passed.
Well, you can if you are a Nobel-Prize Winning Economist like Paul Krugman. It's not like Krugman has ever been wrong.
Incidentally, the Nobel committee doesn't give out prizes for economics.

This isn’t a foolish concern in principle. Over the course of the 1970s just about everyone came to expect persistent high inflation, and this expectation got built into wage- and price-setting — for example, employers were willing to lock in 10-percent-a-year wage increases because they expected all their competitors to be doing the same. Purging the economy of those entrenched expectations required an extended period of very high unemployment — stagflation.

Wages for workers are going up so fast right now. Right.
Why is it that inflation can ONLY be stopped by the working class taking 100% of the hit? The working class got practically no benefit in creating that inflation. It's almost as if the Working class have no part in inflation, except being used as a bailout for incompetence by the wealthy.

Let's not get ahead of ourselves. After all, inflation is no longer a problem.

Less than a month ago, traders were pricing in a cycle that took the benchmark federal funds rate target to more than 4% -- a level last seen in early 2008 -- up from the current range of 1.5% to 1.75%.

But traders have rapidly unwound those expectations, and now foresee a peak around 3.3% in the first quarter of 2023....By contrast, the latest median projections from Fed officials, released last month, show the key policy rate climbing into 2023, reaching 3.75%.

Wait a second. Inflation is running at 8.6% in the United States, and is even higher in much of the rest of the world, but interest rates are going to top out at 3.3%?
Only a month ago everyone was talking about 1970's-style stagflation, but before inflation could even start to fall the markets have already started to price in disinflation.

What appears to be going on in the markets is FOMO (Fear Of Missing Out). Which makes sense, since the Fed has trained Wall Street to think that it will bail them out at the first hint of trouble.

This extreme bearishness would suggest investors are reducing their exposure to equity risk. However, the reality is quite different. As shown below, the A.A.I.I. investor allocation to stocks, bonds, and cash tells the story. Despite A.A.I.I. sentiment at very bearish levels, the allocation to equities remains very high while bonds and cash remain low.
Interestingly, seemingly terrified investors are still unwilling to sell for the “fear of missing out.“ It is worth noting that during previous bear markets, equity allocations fell as investors fled to cash. Such has not been the case in 2022.

Investors seem more afraid of missing the bottom should the Federal Reserve suddenly reverse course on monetary policy. Much like Pavlov’s dogs, after years of being trained to “buy the dip,” investors are awaiting the Fed to “ring the bell.“