The Fed Is No Longer the Loofah of the Bond Market

The stronger US dollar theoretically should help fight inflation, but there's all these other costs to it, right? And the Fed is not really worried about the global costs because they're like, listen, we have to fight inflation here in the United States. The Fed is also shrinking their balance sheet, though they're letting assets roll off the balance sheet. There's going to be an expected $1 trillion more interest payments from the US government. Finally, the US government would help the Fed battle inflation, which is something that Karshari highlighted this week.