Recent news that U.S. bank deposits have fallen for the first time since 2018 shows that the Federal Reserve’s effort to slow the economy is working.

From the Fed’s standpoint, a slowdown in money growth, which includes the demand deposits now in decline, is a necessary first step in reducing economic activity and, perhaps, reducing inflation. But the latest reading on the Consumer Price Index — which shows that August’s all-item number rose by 8.3% year over year, nearly mirroring July’s 8.5%, even with gasoline prices falling — tells us the effort to hammer down inflation will not be easy.