Nope, the fed will crank up short term rates and crater the economy to tamp down wage inflation. That will invert the yield curve and long rates (>10 years) will still remain historically low and disinflationary.
And they've been playing this game since the 90s and the Greenspan fed did it first a blew up the housing bubble that popped in 2008. This cycle goes beyond the memories of Millennials. It just keeps getting worse every cycle.
This is the bit that makes me so angry. Wages lag behind commodity prices and the correction always happens because businesses complain about labor costs (“muh jobs” despite us being at near full employment) and don’t let them catch up to CoL.
It’s infuriating how much the game is rigged against laborers.
And they've been playing this game since the 90s and the Greenspan fed did it first a blew up the housing bubble that popped in 2008. This cycle goes beyond the memories of Millennials. It just keeps getting worse every cycle.