The last time inflation was this high, interest rates climbed over 19 percent. Chairman Paul Volcker and the Federal Reserve took a lot of political heat for the high rates, but the Fed’s response brought down inflation. Theory and experience have shown that active monetary policy can keep inflation in check. But to tame the current inflation without a repeat of the early 1980s, Congress will need to adjust fiscal policy to work with the Fed.
Inflation is well above the Fed’s ...