I am befuddled when the supporters of the dovish Fed say:
that normalizing Rates and QE would do nothing to fix the supply chains issues.
Yes, in the short term, supply chains are rather rigid…
They are!
But in the long run, they have profoundly suffered from capital misallocation.
But with its emergency-like zero rates and needless & endless QE, the Fed has unquestionably contributed to the supply chain problems by overstimulating the overinvestment into the high-growth new economy vs. the old economy.
What does this economy need more now: new Metaverse “real estate” or better real transportation infrastructure?