It’s not looking like we’re landing at all right now, is it?

Economic commentators have been wondering how we have managed to avoid increased unemployment while tightening money so much. Maybe the answer is that we haven’t tightened money that much. Today’s bad inflation report strengthens that case.

From 2021 onward and for a mixture of ideological and political reasons, Democrats have been calling for lower interest rates: urging the Fed to wait to raise them when inflation first appeared, then saying rates should be cut. Biden would probably be better off, though, if the Fed had been tighter at any point from 2021 through 2023. And interest rates might be lower too.