The Federal Reserve under Jerome Powell ballooned the money supply by nearly $9 trillion. That’s not some abstract accounting trick—it’s a flood of new dollars injected into the system, primarily through massive asset purchases during the pandemic and its aftermath. For context, this dwarfs previous expansions and fundamentally altered the monetary base. While the Fed later tapered and allowed some runoff, the cumulative effect lingers in the economy’s plumbing. Central bankers love complexity, but the core mechanism is simple: create money, watch it ripple through banks, spending, and prices.

Inflation has averaged well over 4% annually over the past six years, eroding purchasing power and hitting everyday Americans hardest.2023 Cumulative price increases since pre-pandemic levels have been staggering—around 27% or more depending on the basket. Official metrics like CPI tell part of the story, but shelter, food, and energy realities often feel worse to households. This wasn’t a blip; it was a sustained departure from the Fed’s 2% target, fueled by the interaction of policy choices and external pressures.

Powell’s go-to explanation leaned heavily on rolling “supply shocks” beyond the Fed’s control—pandemic disruptions, wars, energy spikes, you name it.1110 Fair enough, those mattered on the margin. But the deeper truth is that this inflation was manufactured in Washington, D.C. Excessive government borrowing and spending (fiscal stimulus on steroids) paired with the Fed’s accommodative money creation supercharged demand while supply chains strained. Monetarists have long warned that too much money chasing too few goods leads here, regardless of the narrative spin. Central banks don’t “control” everything, but they control the monetary faucet—and pretending otherwise doesn’t rewrite the textbook. True stability requires humility about what printing presses can and cannot fix.

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