Love you Overnight but got to disagree here. They care about inflation exactly because they want their free-ride to continue. If it gets out of control, our currency, the only weapon better than the nuclear bomb... will collapse.
If they can keep their rates just a smidge below the real rates (which needed to go up anyway because inflation is the symptom of money printing, not the cause) they'll retain the ability to melt their debt and unfunded liabilities away; all by simply adjusting the page per minute setting on their printing press.
Think about it.. if you pay x% to borrow, and everyone else pays (x+y)% where y>0; you can borrow money forever and lend it out for a y% gain. That exactly the Fed's game.
As far as "our free ride" is concerned... they never cared about that. In fact, all they want is your stuff and my stuff for free; or pennies on the $. How on earth do you think the government can continue to operate? It's not on taxes... it's with financial repression. Otherwise they'd have to do real work themselves instead of out-source everything.
Powell's rate increases are a case of the tail trying to wag the dog. If it doesn't work out, the short and mid term pain will be enormous for almost everyone. In the long term it might be good though. We'll see.
"The greatest trick the Devil ever pulled was convincing the world he didn’t exist."
