You're right, but the difference these days is the Fed putting the pedal to the metal even when fiscal spending and economic data at all time records.
We haven't seen this phenomena since the 70s when inflation was running hot and the Fed did nothing for many years. Back then, prices continued to rise nominally for many years.
I suspect the Fed will tighten somewhat (taper should be announced tomorrow), but they keep stating that inflation is transitory.
So clearly their intention is to kick the can as far down the road as possible. If inflation does start to inflect downward, they have the perfect excuse to do nothing until it levels off at an elevated level many months later. Rents alone will drive elevated inflation for years to come. However, used car prices will certainly tank at some point which will mask the effect.
By moving so slowly, they seem to be facilitating the development of a new epic bubble, except it's a bubble in most asset classes. Stocks generally aren't too over valued, but hypergrowth is for sure. E.g. NET at 100x sales.
Compare to Cisco in the dotcom bubble, which peaked at something like 200 PE and much smaller sales multiple. The PEs back then are now the PSs. Kind of insane, even accounting for the greater legitimacy of the businesses today.
In the past the Fed used to preempt excesses and inflation. Anytime they haven't, has been a disaster in the long run, historically.
Unfortunately I think a lot of their action is motivated by Powell trying to retain his seat. They really need to either renominate him or put somebody else up for vote so he stops optimizing for the job. His term ends in Feb 22.