Stop worrying about inflation

Ever since Mr Paul Volcker's Federal Reserve defeated high inflation in the 1980s, there have been sporadic rumours of the old monster's return.

The Fed has been flooding the economy with money since the pandemic hit, and promised to keep interest rates low until inflation rises above 2 per cent and stays there. The federal budget deficit is large and Congress is considering relief legislation that would make it still larger. Market-based indicators of expected inflation have been rising.