Inflation is down from 11.5% to 2%.
People ask why it isn't higher given the 4% interest rate, and the much higher rates that Paul Volker had to set in the 1980's
I don't have a great answer, but:
- A lower inflation rate today includes the ~10 rise in prices since the COVID stimulus
- Our economy is highly leveraged, so interest rate manipulation has a higher impact
- The new money didn't go direct to consumers -- the impact of new printing will take time to filter down.