Why Inflation Now....??? The Answer in 2 Graphs:

The Federal Reserve System is the central bank of the United States and conducts the nation's monetary policy. The primary goals of the Fed's monetary policy are to promote maximum employment, stable prices, and moderate long-term interest rates. The Fed also seeks to ensure the stability of the financial system.1

The Fed uses its balance sheet to help it accomplish those goals. The Fed decides what assets it holds, and whether to expand or shrink its holdings. When the Federal Reserve buys debt instruments like Treasury notes or mortgage-backed securities, it is seeking to increase their price and lower yields, while signaling a looser monetary policy to support the economy. Conversely, the sale of Fed assets is a policy tightening approach that constrains financial conditions and asset values.

The Federal Reserve has dramatically expanded its securities holdings to cushion the economic shocks of the 2008 global financial crisis and, later, the COVID-19 pandemic.2

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• M2 A measure of money supply used by the various central banks. In the Federal Reserve System, M2 includes all physical currency and deposits in checking accounts, and adds to this the amount of money in savings accounts, certificates of deposit up to $100,000 (or their equivalents), and money market accounts.