40% of the usd were printed in 2020…how could that not be the root of inflation? If it was covid caused inflation should ease in the next months because supply chains are starting to run again, but all that printed money is still there in the economy…they are trying to destroy the demand, they should destroy the money they printed, but they cannot do that. So what will they do? They will slow the velocity of money with stagflation. Inflation of 7-8% is not temporary. Prices will never go to before covid levels, they can't because they are stabilized on this level now, none is going to sell you milk pre covid price level when everyone sells milk at 20% higher than the price it sold in 2020. None wants to take the hit.
Since these prices are the new norm, they can only try to slow down the printing machine to do not exasperate things, causing a recession (they have already done it), then stagflation for 5-6 years, then cutting rates, which is not pivot but will ease the borrowing/loan leading to another credit expansion
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