On 19 June [after the Fed’s raised rates by 0.75 basis points - Ed], Harvard’s Lawrence Summers was interviewed on Meet the Press for 16 minutes. His topic was inflation. All of his comments focused on a single entity - the Fed. Larry always believed that there had been about $750 billion of “excess stimulus” in the Covid relief measures passed by Congress. This may have led to “excess demand” that in turn helped create inflation. But how much inflation? Econometric estimates suggest that this degree of excess demand would raise inflation by 0.6%, a small fraction of the 7% hike ...