They don't. The options the Fed has are: - Continue printing/lending (enabling further inflation) - Cut printing/lending (economy/markets crash) - Try to per

They don't. The options the Fed has are: - Continue printing/lending (enabling further inflation) - Cut printing/lending (economy/markets crash) - Try to perfectly balance the level of printing/lending (resulting in a period of economic stagnation and slow growth as we pay off our debts / deleverage. AKA the soft landing) Option 3 is what they're trying to do, but it's unrealistic to achieve as it requires perfection not only on their part, but on market participants as a whole, so some degree and combination of all 3 is likely to happen.