[sarcasm]

In order to avoid the worst, the Fed may be forced to drastically raise interest rates?

Increasing interest rates will result in the crash of residential real estate and what's left of consumer demand.

[arete]

In order to avoid the worst

The key word here are "worst". I think that the FED is cornered in a no win situation of their own making. Hitting the consumer and the housing market with a 2x4 may be necessary if the dollar gets flushed. I don't think that there is an easy way out of this.

Richard W.