Yeah, but the point of the fed is to smooth the peaks and troughs. Stimulus in recessionary periods is smart, and prevents prolonged recessions like was seen i

Yeah, but the point of the fed is to smooth the peaks and troughs. Stimulus in recessionary periods is smart, and prevents prolonged recessions like was seen in the great depression, and somewhat during the GFC. But the stimulus has already been done at this point. The crisis is over. The situation we're in now is corporate earnings at all time highs, the gap between open jobs and job seekers at all time high, consumers with spending power at all time high, home prices accelerating at all time highs, inflation running very hot. So this is the exact time that the Fed should be smoothing the peak, to avoid a full on bubble type of scenario. By not acting, they setup the risk factors for another 1929 or 2008. E.g. encouraging mass speculation, high levels of debt and so on. So I agree with you. But the goal should be to avoid creating the conditions for systemic failures by letting bubbles get out of hand. China in particular let their real estate bubble get far out of hand, to the point that it's not really possible to resolve without creating a systemic issue. You fundamentally just have to accept some down periods and small hits to avoid the massive failures that come along with facilitating much larger bubbles/structural risks.