The Fed has No Vision and has Overtightened

The Fed is driving down a windy road while staring in the rearview mirror. Fed Funds rate will break through 7%. The Fed does not have a single strategic bone in it. Central banks are 100% dead wrong on economic forecasts. The Fed outlook in 2022 was incorrect when insisting the inflation surge was transitory. Interest rate hikes are in a lag. Interest rates are restrictive. It is really about how long rates stay at this level. The Fed may also have to hike while in our recession if the war in the middle east expands. We are in a macro driven market at this time. Interest rate hikes impact earnings with a 2-year lag. A $1.7 Trillion U.S. deficit doubled in 2023 and continues to keep us out of balance. We need to be visionary and stop driving the car without some understanding of what the road ahead looks like. You can not just look at the rear view mirror and attempt to adjust every curve you just had, especially when there is a lag. Gerard Rotonda