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The Fed is playing with fire
Markets have been aggressively pricing in Fed hikes as inflation starts to bite for many households.
Rampant inflation has pushed real rates into deep negative territory, leaving the Fed to thread the needle with raising rates to dampen inflation without causing a major upset in growth conditions and asset markets.
Stephen Roach's article, The Fed is playing with fire, discusses the challenges faced by the Fed today and the increasingly choppy macro environment for investors.