The worst U.S. inflation outbreak in a generation, COVID-19, has turned five years old and continues to impact policy debates and national politics. The Federal Reserve (Fed) has been unable to restore the pace of price increases to their 2% target after a significant miss. Inflation, measured by Consumer Price Index, topped 9% in March 2021, the fastest pace since 1981. The Fed initially planned to encourage this trend with continued low interest rates. However, inflation continued to rise, with the Personal Consumption Expenditures price index the Fed uses to set its target at more than a 6% annual rate, triple its target. It did not peak until June 2022, leading the Fed to scramble for steep rate hikes. The inflation has offset most of the increases in personal income, particularly affecting less well-off individuals. The central bank's monetary policy remains tight at roughly 3%, with inflation expected to rise further.