The Wall Street JournalThe Wall Street Journal

Why the drivers of lower inflation matter

By Nick Timiraos and Tom Fairless

30 Jul 2023 · 4 min read

informed Summary

  1. Recent good news on inflation has ignited a debate over how much central banks’ interest-rate increases are responsible, reports the WSJ. The answer matters for where inflation and interest rates are headed.

Recent good news on inflation has ignited a debate over how much central banks’ interest-rate increases are responsible.

The answer matters for where inflation and interest rates are headed. The Federal Reserve and the European Central Bank in the past week lifted their benchmark interest rates to 22-year highs and left the door open to additional increases.

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