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Institutional Economics notes that Gerald O'Driscoll -- a leading authority on the macroeconomics of Hayek -- "is beating the inflation drum in the wake of this week's Fed easing". And he posts this from O'Driscoll:

In the end, financial markets may negate the beneficial effects for economic activity of the Fed's expansionary monetary policy. If markets are in fact turning their attention to the possibility of inflation, long-term interest rates will rise. Higher interest rates offset the effects of monetary stimulus. Perhaps that will yet give Fed policy makers pause. For now, however, higher inflation is in store for the US economy. Global investors take note.