The FED is not soley responsible for inflation. They can influence inflation by increasing or decreasing the money supply.
Inflation is extreme imbalance between supply and demand.
There's plenty of money.
There's plenty of demand.
What is lacking is sufficient supply of goods, services, and labor to meet demand.
Covid created significant dislocation in service industries.
Non-existent supply chain risk management has allowed bottlenecks to develop.
Insufficient competition has allowed monopolies, dualopolies, and oligopolies to have too much pricing power.
The Green New Deal places artificial supply constrains coal, oil, and natural gas.
The Green New Deal also forces inefficiencies - bio-fuel liabilities on refineries, allocation of corn away from food and feed, and carbon reduction compliance costs.
Local governments constrain housing development.
State governments constrain interstate energy pipeline and transmission capacity.
The biggest cause of inflation has been poor or lacking government policy that has prevented economic supply diversity, competition, and growth to meet economic demand.
The American economic snow globe needs to be shaken up.
