Editorial Board
Inflation’s Last Mile Will Test the Fed
Slower disinflation and approaching elections are a dangerous combination.
It isn’t getting easier.
Photographer: Justin Sullivan/Getty Images
The Federal Reserve’s difficult task suddenly looks even harder. The central bank’s goal has been to restrain demand enough to push inflation gently back to its 2% target without tipping the economy into a recession. Up to now, its strategy has worked well: Inflation has fallen sharply from its post-Covid peak and the economy is strong. Yet this progress lately seems to have stalled.
The challenge of the “last mile” is about to test the Fed’s determination. It’s vital that the central bank stifle any doubts about its commitment to reaching its stated goal.