Yeah, a lot of variables pulling in different directions. Will be volatile both ways, at some point they will go back to cutting rates and QE. They just want to look like they are trying to tame inflation, reality is they would have to pull a Volker and get rates over the inflation rate to really get after it. That is literally impossible with all the debt out there.On balance and paper this is the right move. My fear is that this is being driven from energy prices, not CPI. Central banks can’t control the cost of oil.
oil falling would be a really good thing.
Core inflation is rising off the back of it though.
high inflation does have some benefits. My mortgage loan is decreasing while my house appreciates, although short term housing market cooling is inevitable.
Growth and tech stocks look cheap.
Cheap debt like a mortgage in a high inflation environment is probably the best inflation hedge for the general public. As long you can still service the payments, like you said it gets cheaper.