The last time inflation was this high was in February of 1982. Paul Volcker had already turned off the free money and the Fed Funds rate was 15%. I remember that when we moved to the US in 1983, I had a CD at 15%. We were fortunate to get a mortgage at 9.75%.
Volcker stuck to his commitment to bring down inflation and kept rates high, even though the economy had gone into recession. I keep reading pieces that claim the Fed will be making a “policy error” by tightening into a recession. That’s a joke as far as I am concerned. The policy error was made years ago. We shouldn’t be here and the only survivable way out is through recession or depression. The other exit is hyperinflation and that’s a horror show.
Financial Reality 