For years, several companies, like UPS and FedEx, had the ability to move a package thousands of miles overnight, but getting that package delivered to the buyer was the hard part. It was called the “Last Mile Problem.” Then, Amazon came along and solved that problem.

Maybe, we should hire Jeff Bezos to eliminate the last vestiges of inflation?

Dropping from 9.3% a year ago to a resilient 2.7% now is another “Last Mile Problem”. Hoping the rate of inflation would continue to drop as rapidly as it started dropping initially is sadly naive. The danger is over-doing it and driving the economy into a recession. Think of it as a boat approaching the dock – it keeps slowing down as it approaches.

Politically, reaching the goal of a 2% inflation rate will not lower prices, just slow the annual increases. For example, to DECREASE grocery prices back to 2022 levels in the short run would likely require a recession. Is it worth it?

The thoughts, opinions, and emotions expressed are solely those of Jim Flinchum and do not reflect those of Bay Capital Advisors nor any other human beings there.