Part of the problem is that the Fed hasn’t done what it’s doing now — drastically tightening money to fight inflation — for a long time, indeed since the early 1980s. And some analysts, perhaps including people at the Fed, may have forgotten one important lesson from monetary policy in the bad old days. Namely, it takes a significant amount of time before higher interest rates translate into either an economic slowdown or a drop in the inflation rate.
And add in the risk of financial crisis. Britain’s recent bond-market mess was homegrown, but it may nonetheless be a harbinger of the potential mayhem from rapidly rising interest rates.."
https://www.nytimes.com/2022/10/06/opin ... rates.html
To borrow a saying, winter is coming.