True. But then the Fed has reacted to two “once in a generation” events. The Fed’s drastic actions were called for, especially after 2008 (a problem they had little to do with inventing).
I would agree that they held rates too close to zero for too long and that we are now seeing the fruits of that misallocation. I wonder what the other prescription for the bank lockup, credit freeze, and general economic crash might have been. While I fault the Fed, I also note that it has been a human condition for as long as there have been humans to keep the party going, often overlong, and that I do not have a solution to that, so we live with the effects even as we decry them.
It’s clear after the inflation report this week that the next Fed rise will be another .75 (at least) and that there is more pain to come. I still believe they are looking in the rear view mirror (a view I’m seeing more frequently in the financial press) but they are afraid, very afraid of not getting ahead of the inflation beast, so I buckle up.
I have moved liquid cash into some treasury and CD parks heavily weighted to the short end while I wait it all out. I had hoped to start deploying, but that seems a bit premature. (I still have some play money if opportunities arise.)