Does anybody believe this trend will hold...?

"The Fed has been clear that their 2% inflation target is not a ceiling, and that they will tolerate some short term increases in inflation as long as the unemployment rate remains elevated and inflation expectations remain 'well anchored'."

Surely these nice people, who didn't believe there was a problem with the housing/mortgage markets in early 2006, can be trusted to keep inflation well-tamed.  Can't they?

Full story and enlargeable chart is here