> As I understand it, the Fed would control the amount of inflation by setting the interest rates directly. Except that you can't control the amount of inflati

> As I understand it, the Fed would control the amount of inflation by setting the interest rates directly. Except that you can't control the amount of inflation by setting "the" interest rate. You can try to affect inflation with interest rates, but you can't control it. Inflation is too much currency chasing too few goods. Interest rates paid by banks aren't the only currency supply drivers. Velocity matters, and so does govt spending, among other things.