What the Federal Reserve is going to do will have no effect on inflation

The Federal Reserve will stop increasing the size of its balance sheet and hike its key interest rates. But in the medium term, they are expected to reach only 2 to 2.5%. Given the size of non-resident purchases of US bonds, the Federal Reserve's massive bond holdings and the modest terminal level of short-term interest rates, long-term interest rates are likely to remain low (around 2% at the end of 2022). So it is important to note that none of these developments will actually reduce inflation: the real long-term interest rate will remain negative, and will therefore continue to stimulate demand. Perhaps fiscal policy, with the sharp reduction in fiscal deficits, will reduce inflation, as opposed to monetary policy.