According to monetary expert Zoltan Pozsar, the Fed wants to bring stock, home, and crypto prices down to get inflation down. If they don’t drop, the Fed is prepared to shock the markets and bring inflation down at any cost.
This brutal worsening of the trade deficit reduced GDP by $192 billion annualized. But overall GDP fell by only $70 billion! A decline of half the size, which would have still been huge, would have produced a positive GDP reading:
Elon Musk says inflation is happening because the government printed so much money
— Market Rebellion (@MarketRebels) May 16, 2022