A government can work to improve the economy by taking actions that revolve around measures that help together with the Central Bank. These would focus on reducing taxes, public spending, prioritizing an expansive monetary policy (QE) or working on new options on debt.
We already know what measures have been taken and what results have been generated; Of course, the most significant has been QE, in its different stimuli, the FED has fed and maintained the market in order to avoid the collapse associated with the United States economy in order to keep inflation levels stable.
Despite the options taken and the fact that it is not the competence of the FED to increase, inflation levels are no longer the competence of this institution, which is why they are given freedom to grow disproportionately. The truth is that, unlike the opinion of many, it is valid to think that the mere presence of moderate inflation stimulates demand, creating conditions in the present and obtaining momentary liquidity, but will definitely compose the future credit.
The loss of value in the hands of government entities aims to monetize the debt, and this is what we see in the behavior of the FED as the main exponent and buyer of these toxic assets. Inflation is only useful for companies.
The effects of monetary inflation are devastating for the actors of the medium and small sectors since a process of reducing liquidity begins, knowing that the loss of value will buy less and less, jeopardizing a future that is fading into the present.
No matter how much money they want there to be in circulation, no Commercial Bank would dare to offer credit, which would imply a serious record of defaults. It seems that it is not understood how the economy actually acts creating irreversible distortions.
I see that the true record of inflation is simply a manipulated number that operates under policies and statistics for convenience but that reality is far from the digital monitor.
I suppose that many of these cycles will continue to be financed until reality approaches and reflects what many cannot sustain; This decision by the FED will have interesting consequences, which only those of us who are low profile will suffer.
I have written in other articles that you should start looking for clear and hard reserves in the face of the coming inflationary spiral, and do not be fooled, inflation does not necessarily feed liquidity, we must prepare and take the best possible position in the face of the sudden financial blow that is seen.