Inflation woes: How front-loading rate hikes risks financial instability

This Fed rate-increase cycle, which has already delivered a total of 3 percentage points in just over six months, is the most front-loaded one in a long time

The heated debate about how central banks should respond to high and persistent inflation has focused primarily on how high interest rates should go and how long should they stay there. A third issue, that of front-loading the increases, is particularly relevant in this rate cycle. After all, central banks are seeking not just to lower inflation without unduly damaging growth and jobs; they also face the challenge of steering a fragile financial system in which a market malfunction can significantly damage economic well-being.
 

Consider the Federal Reserve. Having badly misdiagnosed inflation last year and fallen behind its price-stability mandate,