>>51462401
>The Fed has to choose between runaway inflation and destroying financial credibility of the United States.
Not really. Rates just have to remain below inflation.
Ironically, higher rates increase inflation because it means more money printing to pay off those bonds. Bad for asset multiples, obviously, but this doesn't necessarily destroy the economy. Truthfully, it's actually repairing the economy, reversing the damage of the past decade of intentional asset multiple expansion. That bubble had to burst though, there's only so far you can push an asset up before the masses realize its a rigged game that they can never break into. This is the whole reason crypto now exists (itself a ponzi).
Anyway, In the end it balances itself out.
At the moment the dollar is actually appreciating despite inflation ramping up. Despite rate hikes. This alone should already be substantial evidence to make it clear that your surface level thinking is simply incorrect. It's important to understand that money has a duration, and the tug and flow of that duration is the key to everything.