Fed and Markets Misjudge Future Rate Hikes Needed to Control Inflation
• The Fed and markets wrongly predicted 6 rate cuts in 2024, showing inability to anticipate future inflation
• Raising rates is possible as economic data is strong, bond market signals no distress
• Further rate cuts could let inflation spiral, requiring hikes to cause financial distress
• Fed doesn't control markets; it reacts to signals about tight/loose conditions
• Author believes focus should be on controlling inflation, not predicting Fed rate moves