Making the Fed Great Again

The piece argues that Federal Reserve policy has been a major driver of modern inflation, with quantitative easing and prolonged easy money linked to asset bubbles, inequality, and the surge in prices seen after COVID. It suggests the current inflation backdrop is more contained than markets fear, since money supply growth has slowed and housing inflation remains modest.

For investors, the message is that monetary policy may be entering another turning point, with possible rate hikes or shifts toward tighter balance-sheet management shaping returns across bonds, equities, and credit. The main opportunity lies in being selective as policy normalizes, while the key risk is that the Fed could again misjudge timing and either reignite inflation or slow growth too sharply.

Overall, this outlook favors close attention to central bank communication and liquidity conditions. Those factors may matter more than headline economic data in driving market direction over the next few months.