absolutely agreed, but the feds also faced with a none too enticing sword of Damocles in raising interest: corporate credit. The fed never acquiesced to its p

absolutely agreed, but the feds also faced with a none too enticing sword of Damocles in raising interest: corporate credit. The fed never acquiesced to its prior commitment to end quantitative easing measures after the great recession of 2008, instead they simply shifted their weight to bond buybacks during covid and shoveled yet more coal into the engines of commerce...the result was a booming stock market during paradoxic unemployment levels and low GDP. the market had become divorced from the concept of anything but money itself earning more money based on its own worth. "transient" inflation became a death-chant in the halls of the fed last year and as christmas sales languished and inflation pushed past five percent eventually the feds bond buyback program which was slated to "taper" in july was signalled to "end" in march. its hard to see that happening however, as using the market as a litmus for policy can never truly happen seeing as it seems entirely removed from the human condition, the worker or any tangible product outside investment itself. the relief is the prime interest rate, but raising it would immediately cause a corporate credit crisis after a major pandemic as companies have for now over a decade enjoyed zero percent, or even negative interest. the ones who are over-leveraged are the ones that cant find chips due to the chip shortage, or cant ship product due to "supply chain." in short, the usual suspects. So my guess is the feds going to try to ride out double digit inflation until somehow supply and demand return to normal, with a tacit nod to the end of high-roller credit being the bond buyback ending and an eventual december...maybe next january interest rate raise. One hopes it worked better than the QE tapering in 2011, which tanked the market six hundred points in a day and was immediately backtracked.