since paul volcker left the fed, generally, and over the last ten years, more specifically, the fed has responded to one thing and one thing only: wall street’s applause meter.
if the fed feels that raising rates will blow up the housing market (which will then blow up the economy), it will lower rates eventually, regardless of the inflation rate. if the fed were really concerned about inflation, rates never would have been reduced to 1% and they would have been at 6% a loooong time ago. the fed is comprised of spineless economic hacks who care more about politics and being liked than about limiting the debasement of the u.s. dollar. it’s all a bunch of smoke and mirrors.
