Fed Will Find Inflation Residue Surprisingly Sticky
Headline figures for the consumer price index are clearly coming down, but core readings remain particularly stubborn.
Used cars and trucks have buoyed inflation but could turn into a drag.
Photographer: Mario Tama/Getty Images
When I was a kid, a skunk infiltrated my family’s basement and discharged its vile-smelling spray, briefly making the property unlivable. Once we called animal control and conducted a deep clean, the situation quickly transitioned from acute crisis to nuisance: The home was livable again, but the smell proved difficult to fully eradicate from carpeting and furniture.
That’s roughly where Federal Reserve policymakers find themselves in the fight against inflation. There’s a persistent and slightly foul whiff of inflation in America, and they can metaphorically open a few more windows and buy more scented candles or, alternatively, they can cave into the hawks, raze the house (in this case the US economy) and rebuild from scratch. Personally, I’d vote for the candles.