The Fed's Quantitative Easing and Zero Interest Rate Policies Generated High Inflation

The global financial crisis led to prolonged low interest rates and an easy economy. However, this did not result in high inflation due to limited consumer spending. Quantitative easing and zero interest rate policies dispersed asset price inflation but had little impact on wages and consumer prices. On the other hand, the recent crisis saw higher inflation as the US government provided direct cash payments and subsidies to households and small businesses.