Unlike earlier episodes, these actions will not be taken in the context of an overheated economy that requires a quick and substantive dose of policy tightening to dampen economic activity and inflationary pressures.
It is worth noting that today the economy is very strong and is well positioned to handle tighter monetary policy. See Alan Blinder (2022), “Landings Hard and Soft: The Fed, 1965–2020,” slides from a presentation delivered at Markus’ Academy, Bendheim Center for Finance, Princeton University, Princeton, N.J., February 11, https://bcf.princeton.edu/wp-content/uploads/2022/01/Combined-Slides.pdf.