The Federal Reserve lacks a coherent strategy and relies on fortunate circumstances, with uncertainties surrounding inflation and monetary policy. There is a fear of undermining confidence in the Fed, leading to a focus on stabilizing inflation expectations. The Fed lacks understanding of economic stability thresholds and largely responds to current issues. Decisions on rate cuts are uncertain, and the Fed hopes to avoid tough decisions despite high inflation. There is no consensus on a backup plan in case of economic disruption, potentially leading to a cascade of problems. The economy’s resilience and stock market bubble may result in excessive exposure and subsequent challenges.