I don’t think it’s hard to argue against that. They were able to stimulate so much in previous cycles because inflation stayed low. Now inflation has blown well past their target level. They can’t use the same playbook UNLESS inflation behaves and comes down on its own pretty quickly.
I disagree with the idea that the Fed doesn’t care about inflation and will just pump no matter what. They take inflation quite seriously; it’s 1/2 of their dual mandate (and it’s an issue voters care about, so politicians will hold their feet to the fire). They’ve been wrong about the transitory-ness so far, but making a mistake is different from not caring about it.
So, I think “the Fed is just going to print money and let inflation run wild” is actually a pretty easy thesis to argue against.
