Inflation is falling, except it is rising. Interest rates will fall, unless they stay the same or, maybe, rise. The rate of inflation is related to the rate of unemployment, but not the way you think.  It’s tempting to get mystical listening to talk like this. Pushed to their limit, discussions around aggregate price level movements end up being versions of “it moves in mysterious ways, its wonders to perform. The central bankers plants their footsteps in the sea and rides upon the storm”. Which might be playful, but it is not helpful.  Let us anchor ourselves for a moment…

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