Nah it’s more complicated than that. The fed is saying that because it’s currently a populist view. However their will to actually cause widespread distress and

Nah it’s more complicated than that. The fed is saying that because it’s currently a populist view. However their will to actually cause widespread distress and a severe recession will be tested when the populist view shifts back which we are likely not far from. If you look at this fed from 2018 on it’s readily apparent that everything they do is to appease the popular narrative. Economy needs rescuing from covid? Okay let’s take rates to zero and pump in liquidity until we’re told to stop. Fast forward to end of 2021- okay stop stop stop! Inflation is getting out of control! Sure, no problem we will raise rates until you tell us to stop, just signal to us before each meeting exactly how much to do. That sounds silly but does nobody find it at all odd that every fomc rate decision is entirely arbitrary whether they go 25, 50, 75 or more and yet cnbc predicts the exact rate decision every time? Believe this fed has a modicum of independence at your own peril. Besides, the Fed’s actions don’t align- if they really wanted a recession why the gradual hikes from 25 when inflation was spiking? Why not a sudden move to say, 7%? It’s been almost a year since the first hike and over a year since they first announced they would be hiking and we’re still sub 5%. The rate hikes they’re doing are way overblown in terms of driving the economy into recession given the tailwind of liquidity we had. Most companies aren’t cutting back because their short term borrowing costs went up 100 bps in six months.