Fed plans to raise rates as soon as March to cool inflation

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It looks like those interest rate increases are working, finally:

Cooling U.S. Inflation Builds Case for September Slowdown in Fed Rate Hikes

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And just as important as raising interest rates to fight inflation is reducing the supply of money in the economy, aka 'quantitative tightening':

Fed’s quantitative tightening is about to arrive: What that might mean for markets

The Federal Reserve’s almost $9 trillion portfolio is about to be reduced starting on Wednesday, in a process intended to supplement rate hikes and buttress the central bank’s fight against inflation.

While the precise impact of “quantitative tightening” in financial markets is still up for debate, analysts at the Wells Fargo Investment Institute and Capital Economics agree that it’s likely to produce another headwind for stocks. And that’s a dilemma for investors facing multiple risks to their portfolios at the moment, as government bonds sold off and stocks nursed losses on Tuesday.

In a nutshell, “quantitative tightening” is the opposite of “quantitative easing”: It’s basically a way to reduce the money supply floating around in the economy and, some say, helps to augment rate hikes in a predictable manner — though, by how much remains unclear. And it may turn out to be anything but as dull as “watching paint dry,” as Janet Yellen described it when she was Fed chair in 2017 — the last time when the central bank initiated a similar process.

QT’s main impact is in the financial markets: It’s seen as likely to drive up real or inflation-adjusted yields, which in turn makes stocks somewhat less attractive. And it should put upward pressure on Treasury term premia, or the compensation investors need for bearing interest-rate risks over the life of a bond.

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Do you all think it is time current Federal Reserve Chairman Jerome Powell should take Paul Volcker's approach in taming inflation for good, even if it means we suffer a sharp, deep recession in the short-term? 

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Fed Moves Toward Another Big Rate Increase as Inflation Lingers
The Federal Reserve, determined to choke off rapid inflation before it becomes a permanent feature of the American economy, is steering toward another three-quarter-point interest rate increase later this month even as the economy shows early signs of slowing and recession fears mount.

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Those interest rate hikes aren't going to end anytime soon so long as inflation remains over 2%:

Federal Reserve Chairman Jerome Powell hints at more big interest rate hikes to prevent 'greater pain' of high inflation

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Fed seen ending rate hikes by March as inflation slows

The U.S. central bank is seen delivering two more quarter-point interest-rate increases before ending its current round of rate hikes in March, after a government report showed inflation continued to slow last month.

The Fed's preferred gauge for inflation, the personal consumption expenditures (PCE) price index, rose 5.0% last month from a year earlier, slower than the 5.5% 12-month gain as of November, the Commerce Department reported.

Core PCE, which the Fed uses to gauge the underlying momentum of inflation, rose 4.4% from a year earlier, but in the most recent three-month average around 3.2% on an annualized basis.

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If Fed Chair Jerome Powell pull this off successfully, President Biden should nominate him for a third four-year year term in 2026:

Lawrence Summers and IMF director both say odds of soft landing for U.S. are improving

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Strength in the bond market is signaling that the US economy won't enter a recession either this year or next