The stickiness of the post-pandemic inflation is raising questions about how effective high interest rates are at bringing down price increases – and if they could be fueling the problem. Standard economic thinking says that higher interest rates should bring down prices by squeezing the labor market and lessening the demand for goods and services. Lower demand then forces companies to cut their prices. Inflation began a rapid descent in the middle of 2022 but has remained above 3 percent for nearly a year, ticking up to 3.5 percent in March. Some experts are now questioning the logic behind rate hikes and asking if they may even be stimulating the economy toward further growth rat
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