Is the Fed Afraid to Tighten Up?

The fed is in an environment it hasn't been in before. I think we are going to get a fair amount of the need to fight inflation, and the fed will have to make some moves. If the market thanks all those guys who are now spending some of their sort of winnings on the market by buying a lot of goods and services, are going to back off. This is the famous wealth effect. There is a sense that in or economic activity can slowd considerably.