The Fed has been reluctant to cut interest rates because the market is telling the Fed that it needs to raise interest rates in the future, until the recession drives down inflation. But the problem is that cutting interest rates is likely to trigger another round of inflation, and at the same time, it is questionable whether the stimulus can stimulate economic growth. The path to stagflation has become clear, but unlike the 1970s, it will be more difficult to deal with this time.