Government actions and commercial banks expected to drive future monetary inflation, limiting central bank control

Government actions will likely keep prices of commodities, goods, and services up, limiting the central bank’s ability to inflate the money supply. This means no “deflation scares” leading to large-scale money creation like in 2008-2021. Prior to 2008, commercial banks drove monetary inflation through loans and securities purchases. Expect future waves of inflation from bank deposit creation. However, if banks stop expanding credit during a weak economy, they may be incentivized to purchase government debt, injecting new money into the economy. Large-scale asset monetization by the Fed is unlikely due to low “price inflation” statistics. Monetary inflation will likely be driven by commercial banks, as before 2008.

Read more at Investing.com.: The Future Engine of Monetary Inflation