The Fed has no idea what the results of their actions will be. They're operating in the dark as there is no precedence for where we are now to model on. Their predictions have been consistently wrong. Real inflation is already above their stated target if you calculate it correctly as the Chapwood Index does. If they keep trying to get inflation higher, it will turn into hyperinflation that will require them to raise interest rates to attempt to head it off. Their reactions will be too little too late.
I think the move into cryptos and eventually to precious metals will accelerate over the coming months. Holding dollars when the Fed tells us that they want to erode them at their target of 2% is a guaranteed looser. And what good is a bond that pays just over 2% when inflation is at 2%? What if real inflation is actually 5%, or 8%?
Cliff High's LT data from 2016 predicted that the Fed would eventually become irrelevant. I think we are seeing the beginnings of that playing out now.
