Everyone looks at the FED, but there's an interesting counterintuitive hypothesis out there that it's not actually the FED that has anything to do with inflatio

Everyone looks at the FED, but there's an interesting counterintuitive hypothesis out there that it's not actually the FED that has anything to do with inflation. In the 1970s, it was international credit creation by banks that was not tracked by the FED that caused persistent inflation (and their attempts to control it were futile since they were not tracking it), and now it's actually the government stimulus combined with the supply shortages that caused the inflation (like the pre-1955 era) - and the inflation will not last beyond this spike since it's not the FED that actually controls it, it's the intermediaries in the financial systems and the banks and their propensity to lend (which is still low relative to pre-GFC). So the FED can do all it wants, but ultimately it's the other actors (banks, financial institutions and government in the form of transfers) that will ultimately decide the fate of inflation going forward - right now it's looking like disinflation/deflation after all of the stimulus and supply shortages work their way through the system (can be seen from the long end of the yield curve). The FED's actions can and will affect the markets however - but that effect is mainly psychological. https://alhambrapartners.com/2021/10/29/inflation-history-everyone-should-know-but-only-certain-people-do/ https://alhambrapartners.com/2021/10/29/inflation-history-ev...