2022-2023 inflation cycle
The Fed raised rates from near zero to over 5% to fight the worst inflation in 40 years. Each strong jobs report reinforced the case for aggressive hikes.
Inflation cooled from 9% to around 3%, but the labor market stayed surprisingly strong.
The episode showed the Fed will prioritize inflation control even when jobs data is strong.
Today's situation mirrors that trade-off: strong hiring versus persistent inflation.
