Forget overkill. Central banks are still way behind.

Bloomberg/Richard Cookson/10-13-2022

“The extraordinary thing about rates, though, is not how high they are but how low. They will have to increase much more to get inflation sustainably lower.”

USAGOLD note: Cookson’s analysis amplifies a point we have made repeatedly here and touched on again in yesterday’s DMR. The Fed is disastrously behind the curve on inflation and likely to stay there in the absence of some major interest rate increases. It could get even worse if the inflation rate starts moving higher.