they make the recession or depression last much longer than if they did nothing
Agreed.
But again, if you were in charge of the FED and ALL indications are that the country is heading into a deep depression, would you, without hindsight, try to STOP the depression or just let it play out?
You would try to stop it.
Do you think if the FED did nothing back in 09, this deflationary cycle would have been over by now?
The reason we don’t see hyperinflation is because of the incredible efficiency of modern companies and their model of cutting costs all along the supply chain. It creates a deflationary environment because they lose market share if they raise prices. And all that money printing created massive inflation...in stocks and bonds. Banks aren’t lending it out, they make more money pouring it into the markets.