Public sector demand is a much smaller percentage of the overall economy. If raising rates did not slow the economy due to high government deficit spending, then we would certainly be living in a much different world of command economy with the government running everything. That’s not yet the world we live in.

Another possibility is that the rate is still not high enough and needs to be raised much much higher to stop inflation. I think rates need to be in the 6 to 7 percent to really stop inflation. The is just a pause. It will come back like a vengeance.