AFMC - Why Haven't We Whipped Inflation Yet?
2024-04-20 05:50:00 ET
Summary
- Despite extraordinary monetary tightening by the Federal Reserve, inflation remains elevated above its 2% target.
- The Consumer Price Index rose at an annualized rate of 4.5% over the last three months.
- Interest rates suggest money is tight. The money supply suggests money is tight. Yet inflation accelerates.
By Alexander William Salter
Despite extraordinary monetary tightening by the Federal Reserve, inflation remains elevated above its 2 percent target. Even more worrying, inflation accelerated during the first quarter. The Consumer Price Index (CPI) rose at an annualized rate of 4.5 percent over the last three months. The figures for Personal Consumption Expenditures Price Index (PCEPI) are similar through February, with March data set to release later this month. It looked like we had inflation whipped as recently as December. Now it looks like price stability is slipping away....
Why Haven't We Whipped Inflation Yet?