Why Inflation Will Not Abate Any Time Soon

"The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, a part of the American Rescue Plan, delivers $350 billion to state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency."  -  Treasury.gov

The Federal Reserve's response to inflation and "The Everything Bubble" has heretofore been timid at best.  They are way behind the curve.  Couple this weak Fed with the "herpes of the financial world" known as The American Rescue Plan and you have a recipe for disaster.  The funding provided to various governments throughout the country has been sitting idle on the sidelines.  The politicians are now starting to cook up plans on how to spend all of this newly minted money.  This is funding that was literally pulled out of thin air.  Or, as I am fond of saying, pulled out of Jerome Powell's ass.  When states and local governments begin spending all of this money sitting on the sidelines, it will put increased upward pressure on the prices of some items.  Who knows where the inflation will show up but it will show up - it's like a carnival Whack-a-Mole game.