Inflation has reached heights not seen in four decades. While the Russia–Ukraine conflict has played a role, prices were already marching upward as the nation emerged from COVID lockdowns. Gasoline prices are at all-time highs, and many other items are registering double digit increases. Inflation pushed the Federal Reserve to raise interest rates sooner than expected, leading the stock market into a sharp decline. Has inflation peaked, and how fast is it likely to go down? Is a recession likely in the near term? What are the effects on employment, and who might get hit hardest? What tools do Washington policy makers have at their disposal to moderate the pace of price increases, particularly in gasoline?