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Until this mountain of M1 money gets managed, absorbed or whatever it takes; inflation is not going away easily. It will have to be hammered in a way that may cause crippling in the opposite direction. Not sure how this works, we are in very new territory. This is what you get when you print money and print too much of it. The value goes down, inflation goes up. The value of deposits goes down. We all took a huge haircut for all the covid and other stimulus.

https://fred.stlouisfed.org/series/M1SL

As long as this mountain of printed money remains in the economy the value of the dollar will be down. All the FED is doing now is trying to create the illusion of removing money from the economy. Perhaps they are trying to employ it somewhere else like interest payments? Maybe they have some new theory. They seem to play on that a lot. This mountain of money has created a new territory.

You can't hit the accelerator on anything this much and not expect a major change to something different than you had before. Just not possible. This money, printed out of thin air, does not go away. You can either increase productivity to back it or devalue the currency. We are not increasing productivity.

The only thing that can save you from loss is hard assets. Equities might eventually compensate but probably not fully for a very long time. Anyone holding bonds before rates went up is going to take a permanent beating which is why I absolutely hate bonds. You may sell old bonds and replace them with higher return new ones buy you will have less to invest than what you paid for the old bonds. That is a going out of business model.

The FED is creating something they can't manage quickly. Each step they take to raise rates creates inertia in the direction they are taking. They can't unwind this without creating a worse problem than they are trying to solve.

Test me on these things. Show me where I am wrong.