Douglas Carr today writes about the predicament the Fed finds itself in these days, and he’s not exactly optimistic:
Never has U.S. inflation exceeded 4 percent without incurring a recession. Never has the U.S. stock market been at its current valuation without incurring a recession. Never has the U.S. housing market been at its current valuation without incurring a recession. Never. Never. Never.
So, what is the Fed’s policy positioning to meet these challenges? Former Fed governor Kevin Warsh, perhaps with poetic license, describes it as “the loosest monetary policy in the history of the world.”
https://www.nationalreview.com/corner/today-in-capital-matters-the-feds-predicament/