The recent rise in inflation, due to iran and oil. Should the Fed step in with higher rates or should the market deal with it?
Example: Fed raises rates. That will increase costs, slow economy/recession and produce layoffs. this will reduce demand on everything and lower inflation.
The Fed doesnt raise rates: Increased oil will slow economy/recession, produce layoffs, reduce demand on everything and lower inflation.
I hesitate to say that the iran oil thing is also temporary. I think the inflation from oil has crept into the economy quite a bit. And even if the war ends soon, that inflation will remain for a long while until there is a recession/layoffs.
This inflation is not due to money printing, so the fed's action of raising rates as the cure seem misguided. No more fed/congress meddling, let the market heal on its own.