Federal Reserve
The Federal Reserve it can be argued has done a great job of propping up the economy during the Great Recession with its easy money policies led by Quantitative Easing 1, 2 and 3. However, the growth in the stock market and the low interest rate on our ballooning debt is artificial as a result of the Fed's policies. Dialing back of their latest bond-buying program, is the finesse move confronting the Fed for the next five years. If the Fed moves too fast, it could cool the recovery. If it moves too slowly, it could fuel asset bubbles or excessive inflation. With the stock market booming since the election of Donald Trump, these fears are heightened.
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Who’s Right About Inflation....The Fed’s Critics Or the Markets?

1/6/22
from Forbes,
1/4/22:

Among critics of the Federal Reserve, the claim that it is “behind the curve” has been a rallying cry that it is acting too slowly to rein in inflation. In their judgment, the spike in inflation this past year to a three decade high is not transitory, and the federal funds rate will need to rise by more than the 75 basis points this year that the Fed signaled at the December FOMC meeting. In a recent Wall Street Journal commentary, Mickey Levy of Berenberg Securities cites data that show a broadening of price increases and mounting wage pressures as evidence that inflation is becoming embedded. He concludes that the Fed will have to tighten policy much more than it currently envisions to tame inflation. ...they also need to look at forward-looking indicators such as money supply, commodity prices, the shape of the yield curve and the value of the dollar against key currencies. So, what are these indicators telling us about inflation and how reliable are they? One metric that some view as prima facie evidence of looming inflation is a nearly 40% spike in money supply (M2) since the coronavirus pandemic struck in February 2020 (see chart).

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