The purple line is the Fed’s System Open Market Account, in other words, its securities holdings. You see the Fed’s balance sheet normalization 2017-19, and then the return to massive QE in late 2019.

When Yellen shrunk the balance sheet from October 2017 until late 2019, all popular measures of inflation declined with a lag.

(Click on image to enlarge)

Then along came Powell and his QE panic. You see the result.

And the Fed pretends to be surprised by inflation.

You have to wonder what is wrong with these people. Are they blind? Are they stupid? Are they ignorant of inflation’s cause? Or are they just moral pygmy lying liars who lie?

I will let you be the judge.

“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” – Milton Friedman