Unfortunately, in terms of economic stability, we are just now entering the night. Recession appears to be on the horizon and like a rogue car in oncoming traffic, the average person doesn't see it coming - or do they?
The buildup in pandemic relief, the mismanagement of inflation, and the bad policy decisions during the pandemic - all chickens are now coming home to roost.
Inflation has reached levels not seen since the early 1980s. Workers are unhappy, consumers are stretched to make ends meet, and there's a general malaise in the country.
Investors and the Fed appear to be at the end of a beautiful friendship, but neither has the strength to admit it.
It appears that the fable around inflation being "transitory" has finally caught up to the Fed...and the markets. We could have arrived at that moment when confidence in the Fed has been lost.
There are those saying that a recession is imminent and there are those saying that the economy is booming. Both are wrong.