but only to certain extent. if things are getting worse in the coming quarters, i think the govenment may try other metheds:
1. subsidies: doing now in a way of govenment bonus;
2. artificial interventions like price controls, will not likely to happen;
3. rates adjustment: may happen if things gets worse, but the impairment with Fed rates may create more long term troubles.
4. do nothing: since the recession fear is growing, just let market adjust itself. but this is slow and perhaps dangerous.
summary:
whatever we do, curbing inflation comes with some other tradeoffs. most of them are trading long term interest for short term relief. 现在我觉得政府是“以不变应万变”+ moderate intervention!
personal view that inflation will still go on! this is simply the nature of economy.
