Some argue that inflation is transitory. Of course, that is true of much of the double-digit core consumer price index (CPI) inflation rate in the second quarter. But the economy’s two largest markets — for labor and housing — suggest that significant inflation will be sustained; so do reports of rising shortages everywhere, from supermarket shelves to semiconductors. The Fed used to believe in preempting inflation. Now it is in a posture of not even beginning to reduce the most generous monetary accommodation in history until presented with conclusive proof of excessive inflation.

Source: Washington Post August 26, 2021 18:00 UTC