The Fed seems to be in a similar spot to where they were in late 2021 where they have committed to a policy framework, but that framework is wrong. Then, they continued ultraloose policy through a huge speculative bubble and inflationary boom, continuing asset purchases right into 2022. Now, they rolled out the Mission Accomplished banner in November 2023, stoking a reacceleration of inflation pressures reminiscent of the most historic central bank mistakes. Powell’s premature removal of foot from brake has triggered a huge loosening in financial conditions and a flight to non-fiat assets as the market frantically ... (full story)