Commentary Washington has at last admitted what every American has known for months: the country suffers a painful inflation. For the longest time, those in authority have dismissed people’s concerns, insisting that the inflation is “transitory.” But Washington has had to change its tune. No one admits error—who in Washington ever does?—but officials now acknowledge reality and have walked back earlier comments. More important than the rhetoric, monetary policy has begun—though only just begun—to deal with the inflationary menace. The flow of data made the change. At the close of 2020, the Federal Reserve (Fed) confidently forecast low inflation for 2021. Using its preferred indicator, the consumer price deflator, it expected 1.8 percent inflation for this year. Early in the year, the new Biden administration also forecast low inflation. Its budget forecast put 2021 CPI inflation at 2.1 percent. In the first six months of the year, the CPI rose …
-
Recent Posts
-
Archives
- May 2025
- April 2025
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- September 2013
- July 2013
- March 2013
- January 2013
- December 2012
- November 2012
- December 1
-
Meta