Commentary Since the second half of 2021, the economic and finance world has been focused on inflation numbers that are both high and increasing. This is the first in a series where we’ll focus on what higher inflation means to you, how and why it’s being mismeasured, and what steps you can take to protect your portfolio in a high-inflation environment. A common definition of inflation states that it’s what happens when too much money is chasing too few goods. The Federal Reserve (“the Fed”) has been pursuing two policies that have caused inflation. First, they have kept interest rates low which encourages more business capital expenditures, consumer spending, and government borrowing; all things that increase demand for goods and services. According to the Federal Reserve Bank of New York, the Federal Funds rate (the rate at which financial institutions make overnight loans to each other) is currently .08%, or …