Powell is under considerable pressure to do something in the short term, even if it is wrong in the long term, which raising rates is as a means of stabilizing the economy. The concept that involuntary unemployment is preferable to inflation is one that only the wealthy can agree to.

The real danger is posed by the usual misinformed suspects in Congress that will respond to inflation with austerity economics. If fiscal "belt-tightening" is coupled with the inevitable rise in unemployment from higher rates we could be heading for a much deeper recession than can be managed with monetary policy and the underlying cause of inflation will not be countered.

Congress should be investing heavily to shore up the supply chain weaknesses that were exposed by Covid and preparing to support states which can expect to be hard hit by unemployment claims as the higher rates do their dirty work. There is no lack of appetite for Treasury debt from investors once the rates are sufficient to draw them away from riskier investments and their low-return bond holdings should have been exchanged for reserves while the Fed was in QE mode.

The stage is set for them to absorb whatever spending Congress might wish to engage in while they take a break from all their stress and exertion.