Federal Reserve has limited options to deal with inflation. It all boils down to too much money chasing too few goods. The Fed Funds rate is an awkward tool,

Federal Reserve has limited options to deal with inflation. It all boils down to too much money chasing too few goods. The Fed Funds rate is an awkward tool, but the only option once inflation gets out of the bag is to suppress demand. Inflation can be far more destabilizing than unemployment. Of course, it would be nice if the congress could excercise prudent fiscal policy.