That takes time. The end result is that eventually
it shows up as rampant inflation.
This is only the third episode of its kind in the history of the United States. All three have occurred within the present decade. But the magnitude of the one last month dwarfs by comparison the previous two. Is the Fed jumpy, or what?
Alan Greenspan inaugurated the first two. The one at the end of 1999 was intended to offset the global Y2K computer problem that would throw the world into chaos. People bought guns, ammunition, and stored food supply for a year. It never happened.
The second was intended to offset a possible run on the banks for cash in the immediate days after 9/11. Didn't happen. The difference between these two events and the current one is that this one is intended to offset real effects thatare that have been, and still are, emerging in the form of genuine insolvency crises and credit seizure.
The after-effects of these inoculations are delayed, rolling, rising inflations that recreate the probems they were meant to cure.
The pathologies of the body economic are naturally self curing. Unscientific monetary and financial interventions serve perhaps to ameliorate discomfort somewhat but delay a more rapid return to normal financial health.