When You See Inflation in the Eyeballs, It's Too Late

Many central bankers have been, in a sense, prisoners of the last war. Desperate to get inflation up. Amongst the things the fed did was essentially move towards average inflation targeting. The problem is that the inflation framework came into play when the problem has become high inflation. Now they say, well, we've said three or four %, it seven. Maybe we should act. And of course, they've got another element in it, which is, we won't act before we stop buying securities.