As we no longer live in a world where money only exists as a physical entity, such as a coin or a banknote, it should be noted that the Fed does not directly control money supply; The vast majority of money creation comes from lending by commercial and investment banks, not the Fed.
The Fed has some influence over this major element of money supply, through the setting of interest rates; But this is not control in the direct sense.
If people want money badly enough, they will borrow it even if interest rates are high, causing inflation. If people have money but nowhere they want to invest it, they will use it to pay down debt even if interest rates are low, reducing inflation.
Most of the money in existence today is numbers in computers. There is no hard limit to the amount that exists, and while the Fed can generate extra money, they are far from the only (or even the biggest) source of new money generation in the economy.
Of course, money creation is only half of the money supply issue (and money supply is only a small part of the inflation issue). Money supply is also influenced by money destruction. Repayment of debt destroys money. Federal taxation also destroys money.
The Fed can encourage debt repayment by raising interest rates, but they have only limited influence over how much debt is repayed (and therefore how much money is destroyed) as a result. A more direct way to reduce money supply is through raising taxes. Am I to presume that RVonse is lobbying for large increases in federal taxation, to fight inflation?
Or is he just a simpleton, pining for the long gone days when money was simple, and easy to understand (albeit dreadful for the economy)?
Back in the good old days, money supply was the same thing as the gold supply, so inflation happened whenever miners had a big strike that supplied more gold than economic growth could absorb; And more commonly, deflation happened whenever the economy tried to grow because of a new innovation, because nobody could magically create extra gold to match the new economic reality.
We had a nice, simple, easy to understand economy for a thousand years; It was called the Middle Ages, and nobody thinks that going back to a medieval way of life is particularly attractive. But the only alternative is an economy that's hard to understand, and simpletons hate stuff that they have to think hard about. So they just pretend that things are still simple, and they just mindlessly drag us back towards a medieval economy, with its medieval lifestyle.
