How should I position my portfolio if inflation comes back?

In recent months, the prospects of higher inflation has become front of mind for many investors. The enormity of the fiscal and monetary response to COVID-19 means that, for the first time in decades, the U.S. may experience a more robust inflation backdrop than has been observed in recent years; and with the Federal Reserve adopting an average inflation targeting framework for future policy decisions, this inflation may be tolerated for longer than would have otherwise been the case.