Stanley Druckenmiller once said that as “an economy reaches a certain level of acceleration… the Fed is no longer with you… The Fed, instead of trying to get the economy moving, reverts to acting like the central bankers they are and starts worrying about inflation and things getting too hot. So it tries to cool things off… shrinking liquidity…”
This is where we are now. A classic late cycle environment.
The Fed stated loud and clear that they’re happy with where the economy and plan continue on full-steam ahead with rates hikes and quantitative tightening.