U.S. price inflation is at 9.1% and a there is a fiercely strong dollar, a pair of statistics that was certainly unexpected a year ago and even now seems odd. On closer inspection, however, these numbers reflect a world in which the U.S. is still seen as a leader — in both economic growth and its ability to respond nimbly to crises.
Many countries are currently experiencing high inflation, but markets view the U.S. as the one most interested in setting the problem straight, and relatively soon. American voters hate inflation, the Fed is taking palliative actions, and the American political system is willing to suffer a recession to bring down inflation, as it did during the late 1970s.
The U.S. is not the only nation that will succeed in lowering its inflation rate by a fair amount. But the political equilibrium in the U.S. is probably the most transparent, if only because the U.S. is the country that everyone obsesses over on social media.
