The Fed is haunted by the ghost of inflation from the 70s and 80s. https://www.federalreservehistory.org/essays/great-inflation https://www.federalreservehisto

The Fed is haunted by the ghost of inflation from the 70s and 80s. https://www.federalreservehistory.org/essays/great-inflation https://www.federalreservehistory.org/essays/great-inflation And the interest rates - https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS And you'll see in that the "ok, it's going in the right direction, cut the rate, and inflation spikes again ... " and doing this again and again. My crystal ball says that this will be a slow backing off rather than trying to revisit what the 80s had. That said, with monetary policy, there are very few knobs to turn. Fiscal policy has as many knobs to turn as they want, but is mired in politics and (not infrequently) goals that work out of alignment with the central bank's goals.