It does, but the Fed will have to print the money. The Fed claims that its vast increase in the money supply is not inflationary, and that liquidity can be withdrawn easily. But through policies like extending unemployment benefits, propping up the stock market, and now bailing out the FDIC, the money is going into the real economy.
Auf Englisch, this means... they will begin to contract the money supply, thus triggering a slow down in GDP which, auf Deutsch means new recession. In for a penny, in for a pound, they say!
Oh yes, of course it will be printed. I really don’t understand how the Fed is planning to “soak up” the extra money it’s put out once things start getting inflationary.