The BEA’s annual revisions shaved a few tenths off the rate of inflation. But spending levels suggest the Fed’s fight is far from over.

Inflation has been above target for 65 months. The Fed took a first step, but to restore stability, tightening must continue.

The financial crisis demonstrated how regulations can produce dangerous incentives — and how discretionary intervention can magnify uncertainty. Eighteen years later, policymakers remain tempted by both.