The Fed Wants to Avoid a 1970s Style Environment at All Costs

From 1970 to 1980 when inflation bounced between 6% and 15%, the S&P 500 had an average return after inflation of less than 1% per year. In addition to high inflation, the 1970s also witnessed record high unemployment and a recession. The Fed became convinced that prices would not cool down on their own and that intervention was required in order to prevent a 1970s style event.