All this focus on the jobs report, the Federal Reserve raising rates and other economic reports, sometimes has us putting blinders on. Then something happens that makes us realize that we are not alone in the world. Perhaps it is the pandemic or the war in Ukraine. The bottom line is that inflation is not an American problem, it is a world problem.

When Russia attacked its neighbor, that raised the price of energy across the globe. And it happened at a time that global energy consumption was rising because of the recovery from another world-wide problem – the pandemic. It did not just raise the cost of gas in our country. Therefore, the fight against inflation is not on the Federal Reserve, it is on every central bank and country in the world.

Which is why, when one country such as the United Kingdom chose to move to stimulate their economy because it was slowing, their currency fell precipitously, and interest rates rose steeply. Of course, that bled into our markets. And when the Bank of England stepped up their purchases to stabilize that situation, our interest rates reversed course—all in a matter of a few days. Back to the bottom line – we can’t just analyze our own economy in order to predict our future. The previous days of Brexit demonstrated that maxim to us.

Dave Hershman is the top author in the mortgage industry. Dave has published seven books, as well as hundreds of articles and is the founder of the OriginationPro Marketing System and Mortgage School. Want to send this commentary and other news in a personalized format to your sphere database or on social media?  Sign up for a free trial at