If the only antidote offered to prevent a 2008-style contraction is monetary easing, then the risk of stagflation is even higher. Without drastic cuts to deficit spending, or a recession, the likely outcome is stagflation.
Official Washington is shocked—shocked!—at the alleged influence peddling by Senator Robert Menendez. But it is the pursuit of empire and attempts by Washington to meddle everywhere that make such peddling so profitable.
If we read between the lines, it is apparent that the Fed is hoping that price inflation will fall to politically acceptable levels without any additional tightening, and without a recession. But "hope" is all the Fed has.