US Has Probably Reached Peak Inflation: Pimco's Wilding

The video discusses the Federal Reserve's preferred inflation gauge, excluding energy and food prices, and its positive movement. It explores whether peak inflation has been reached, noting that indicators suggest a peak. The transition from 8% to 4% inflation is expected to be swift due to moderating supply chains and energy prices, but reducing it further to 2% will be more challenging, requiring more time and central bank efforts. Recent banking sector stress has led to tighter credit conditions, aiding the Fed's work. The central bank may now observe as tight conditions help reduce inflation.

What factors are contributing to the moderation of inflation as mentioned in the text?

What role does the Central Bank play in managing inflation according to the text?