Inflation was reported moving up at a 5% annual rate. That is the highest rate since 2008
For those who have little memory before 2008, the fed was always been historically proactive in putting the brakes on dovish monetary policy when circumstances warranted. Once inflation is "out of the bag", it is very difficult to contain.
While almost everyone is talking about "is the current inflation transitory?", inflation is quickly picking up momentum. The Fed typically was very cautious about letting the momentum pick up. Even if they get off their rear end and get moving right now, it may be too late.
The Fed, while operating in the government, is not a political body. Unfortunately, political pressures have increased on the Fed to keep the economy growing continually. Historically, the Fed would have been easing back on the monetary throttle with inflation numbers like those recently reported.
Economic cycles are here to stay. Monetary (Fed) and fiscal (congress) policies that try to achieve a continually rising economy are just pure fantasy. If anyone tells you that it is different this time, they must be doing a standup comedy routine!
Be smart, be well-read, be aware and be successful.
