What if the Fed continues to incorrectly apply misguided inflationary policies at this critical moment? They typically get inflation "Wrong" because they misdiagnose the cause for alarming increases in prices: printing too much money.
The danger is revealed in the Fed's policies to date which will exacerbate, not retard, inflation for the immediate and longer-range future.
Nobel Laureate Milton Friedman observed that inflation is always and everywhere a monetary phenomenon and that even without the gold standard there were inherent limits to printing more money.
While inflation involves a general increase in the price level, deflation involves a general decline in the price level.
Without advance notice about whether monetary policy was too loose or too tight, it would generally be too late to reverse course once inflation showed up in the CPI. Inflation is also often and fundamentally described as too much money chasing too few goods.
Adding a $6 trillion infrastructure plan to an already over-loaded national debt - currently approaching $30 trillion - can lead us nowhere but to runaway inflation.
Rather than leave important economic policy to Congress and the Fed, Biden needs to find the critical courage to implement sound policies to avert what is certain to be a scary, uncontrollable inflation freight train that will derail his legacy along with the country's economic prosperity and future fiscal health.
https://issuesinsights.com/2021/06/25/as-biden-bumbles-abroad-inflation-roars-at-home/
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