- A few weeks ago, there was still a reasonable debate about whether US inflation would soon begin to peak. Whatever the merits of the argument, it’s been obliterated by the economic blowback from the war in Ukraine.
- The news about US consumer inflation continued to increase in February is especially worrisome because the ongoing acceleration does not yet reflect Ukraine effect.
- The challenge for Fed policy is easily summarized by comparing current interest rates to inflation.
For further details see:
Fed Policy Is Wedged Between The Rock And The Hard Place