Policymakers around the world are facing a difficult choice. Inflation has accelerated rapidly and its forward trend is uncertain. Less accommodative monetary policies have been embraced as cures. The hope is that higher interest rates will slow economic activity enough to curb inflation while limiting the impact on activity and employment. Orchestrating this so-called “soft landing” is difficult at best as monetary policy alone does not dictate aggregate supply and demand forces in the economy. A most recent example has been the impact of supply chain disruptions which were not a function of monetary policy. A review of key variables can provide perspective for investing amidst the dilemma at hand.