It seems to be widely accepted, that there are two solutions that FED and other financial institutions ECB, IMF and the likes are going to resort to.
Raise the rates and stop the printer or print their way out of the situation. There is a lot of speculation as to which one is more probable, in reality since the beginning of the Pandemic somewhere around March 2019 we have not seen major dips in equity markets. This leads many people to believe, that if a slight correction would happen the FED would jump to catch the markets if they fall. I have no complaints about this personally as they say don't hate the player hate the game...In other words, so long as equities are pumping and indices are pushing ath after ath it makes sense to stay invested almost risk-free with those sweet returns. Thus far crypto world also seems to show correlation, how could it not once so much of the total money supply is being printed over the last year. So granted that FED goes this way, inflation will be continuously growing higher and end up hurting the most vulnerable among us hardest.
The other option is the actual rate raise. It is considered to be less likely among the people that I tend to read and it makes sense, first FED pledges for full employment and raising rates would put enormous strain on business sectors that have suffered the most, customer services, leisure, travel etc. Let's not forget the bubbles that have been created over the last two years, the stock market by its valuations is the epitome of the bubble, like real estate for example. Expensive money would arguably slow down the economy which has still not recovered at least not equally.
The problem is though that both scenarios seem possible and they are radically opposite, which means once everything settles there will be clear winners and losers.
I wish all of you success in your decisions!
