Will history repeat itself?

 Share an interesting thought about the potential re-surging of inflation after the Fed is in the process of cutting rates.

 

 

The orange line shows the nominal rates of inflation (as measured by the consumer price index) from 1966 to 1983. The blue line shows inflation from 2015 through today.

As you can see, while the nominal rates of inflation were higher from 1966 to 1983 compared with 2015 through today, the percentage changes in the path of inflation are nearly identical.

Will history repeat? We can't say for sure. But the thought is compelling. The Fed is lowering rates as soon as it possibly can after a 40-year-high spike in inflation (according to its math). So why wouldn't inflation reignite (absent a great recession)?