Will headline inflation remain sticky? "There is still too much money chasing too few goods. It will take time for the Federal Reserve to beat inflation down. Headline inflation includes food and energy. When you raise interest rates, you are slowing down the money multiplier effect. This discourages new borrowing, so that decreases the money that is created in the system. This does not do anything to take out money that is already in the system," says Jake Hanley.