In my opinion, the rest of this panel really has their heads in the sand. I will not go into a great detail here, but an analysis of the liquidity preference and treasury bonds (which shows the recent and anticipated spat of Fed actions is unprecedented on any scale) suggests a rise in short-term interest rates will either lead to large leaps in inflation or a significant pull down in the Fed balance sheet. The Fed's actions is pushing the monetary base to an estimated 27 cents per unit of nominal GDP. This is just unprecedented considering that the high end of the range in almost all periods was just 9 cents. This level, in itself, just pushes the risks of a destabilizing event off the charts.
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