Now, the Fed is fighting inflation by raising its interest rate target range and is in the process of shrinking the Fed’s balance sheet, which is referred to as quantitative tightening (QT), by passively stopping the reinvestment in some maturing Treasury securities and agency mortgage-backed securities (MBS).
Month-on-month data suggest easing inflation pressures Now, I will go to most of the questions that have to do with inflation. Of course, 2022 was a bad year. The average of the year-on-year inflation was 5.8 percent, and the last print was 8.1 percent. In addition, the inflationary expectations of private analysts are unusually higher relative to ours.