The problem is, most people don’t sit around and look at numbers to make decisions. They directly look at what impacts them and what’s happening around them and

The problem is, most people don’t sit around and look at numbers to make decisions. They directly look at what impacts them and what’s happening around them and change their habits. These habits make the recession almost self fulfilling. Even if inflation is falling faster than most people know, the way fed has played is hand is going to be devastating. Stock market has been destroyed. Stock market != economy is not true in this case. Most people’s savings are tied in the market one way or the other (401k, pensions, actual investments etc.). People who don’t have savings or have any form of debt have their debt have its interest go through the roof. People are losing jobs at the highest level of the economy, which will trickle down as the rich and the upper middle class downsizes its spending. Housing prices won’t go down because the supply/demand dynamics are still terrible in most places where people want to live. And people who bought at inflated rates are not selling anytime soon unless they absolutely have to.