The Fed is already doing too much.

Well, Powell said that inflation is still too high.

But consider these:

1. American consumers saved up $2.1 trillion in excess savings during the pandemic, and have been spending them at a rate of $1 trillion per year since August 2021. These savings are projected to run out in September.

2. Trillions of dollars in CRE loans come due in the next 2 years, likely severely imperiling most banks outside of the nation’s largest ones

3. Trillions of high-yield debt becoming increasingly hard to finance, which could lead to a large rise in bankruptcies dragged out over years

And the Fed is still considering hiking?? I won’t be surprised if we get something close to ‘08. This is just a disaster waiting to happen. We’re just way too addicted to free money to go back to pre-08 rates. So many companies had their business models built during a time of low rates with easy access to capital.