Mohamed Mohamed El-Erian, a consultant to Allianz and former chief executive of Pimco, believes investors are indeed increasingly concerned that the Fed may be too slow to respond to inflation problems in the economy.

"the market is worried that the Fed will be 'late'," Mr Erian said. That's why the markets themselves are starting to question the liquidity paradigm, because if the Fed turns out to be 'late', it may have to 'slam on the brakes'. "

Mr Erian said earlier this month that the Fed had got itself into trouble by publicly promising to wait months to see if inflationary pressures intensified.

"instead of hitting the brakes as cautiously as the Bank of Canada has recently, the Fed continues to encourage the loosest financial conditions," he said. Market bubbles and excessive risk-taking will be accompanied by a rise in actual and expected inflation. In the end, the Fed could be forced to slam on the brakes, potentially undermining an inclusive recovery that should have been sustained. "

Bank of AmericaAlthough the Fed has repeatedly stressed that the current price rise is temporary, fund managers still see inflation as the biggest threat to their portfolios rather than the COVID-19 epidemic, according to the latest monthly survey of global fund managers.

The survey shows that a record 69% of respondents believe that the growth is above the trend level andInflation is the most likely scenario in the future. In addition, 35 per cent of respondents saw inflation as the biggest "tail risk".