What the Fed Can and Cannot Fix in Today's Inflation | ETF Trends What the Fed Can and Cannot Fix in Today's Inflation Gary Stringer, Kim Escue, Chad Keller, Shelton Capital Management November 4, 2026 The U.S. Federal Reserve's (Fed) tool kit is built for broad economic problems. When the economy slips into recession, the Fed can lower interest rates and add money to the financial system to stimulate growth. Conversely, when inflation runs too hot, it raises rates to slow demand and the pace of money growt ...