Has the Federal Reserve got it right on inflation? It doesn't seem that way.

 

Money Supply and the Fed's balance sheet is still too high relative to inflation, which would indicate that their bond swap programs are still revved up, indicative of the rally in stock markets from October 2022, despite the Fed's at time ambiguity and guidance to the markets in monetary policy and its inflation 'fight'.  Stocks remained supported above the metaphorical Powell 'puts' of 3978 and 4000 (red dotted horizontal lines).

Separate pane shows the unemployment rate at all time lows, which is showing how tight the employment market has become after the 2020 lockdowns.  

Jerome Powell, Fed chairman decided to leave rates unchanged and 'paused', which is rather astounding that the Fed is allowing inflation to further embed into the economy.  

Ex-New York Fed Bill Dudley lays out his four 'fatal flaws' on the current Federal Reserve policy and its so-called inflation 'fight':  morningstar.com/news/marketwatch/20231101432/ex-new-york-fed-head-sees-risk-of-four-fatal-flaws-in-central-banks-thinking-on-pause