Just because the Biden administration and the Federal Reserve are "doing too much" does not mean there will be inflation in the United States

Given the cyclical situation and the degree of underemployment in the United States, US fiscal and monetary policies can be considered overly expansionary. The Biden administration and the Federal Reserve are "doing too much" and it is often concluded that this will bring inflation back to the United States. But if the stimulation of demand is excessive, and if the reaction of imports to the increase in domestic demand is strong, the result is not a rise in inflation, but a sharp deterioration in foreign trade. This high sensitivity of imports to domestic demand is evident in the United States, which shows that it is the deterioration in the trade balance and not a rise in inflation that is the development to watch in the United States.