This is what I've been saying for a long time. It's why I de-risked in Sept last year. I thought China would be the catalyst before Russia but the underlying issues were thereThe Fed can't raise interest rates high enough to battle inflation caused by supply/demand metrics due to the pandemic collapsing supply chains, because it would cause an uncontrollable severe recession.
The Fed can't very well sit on their hands and do nothing while inflation runs rampant.
They are left with raising the interest rates a little and hoping that has a desired effect. They are basically "hoping for the best".
There isn't a shortage of baby formula in the US because of money printing or an excess number of new mothers needing formula.
Prepare for high inflation until the supply chains get untangled. Hopefully it won't be a long wait.
The Fed has been painting themselves into a corner since the 2008 crisis and failed to correct course in 2018. There were already massive repo market issues in late 2019 before Covid which gave them an excuse to bring back massive QE before mainstream caught on
It's not in the mainstream media yet but healthcare and other critical supplies I won't mention are being impacted by Chinese supply now. We need to manufacture critical supplies ourselves. Time to turn those GM factories into critical supply chains while we have war refugees coming in willing to work.
Living high on Chinese slave labour while printing magic fiat money to pay public bills and ignorantly destroying the planet like boomers is unsustainable