The problem is really that they are doing it extremely fast while ignoring the very financial plumbing they made everyone around the world rely on for two decades. It’s quite shortsighted to keep USD at extremes to soften inflationary pressures in the US while letting the RoW and developing countries burn. It’s 2022 and everything is connected. There’s no such thing as a decoupled economy.
so you are saying we should sit through 15, 20% inflation for the sake of other countries? that's not the fed's mandate and you will never, ever get domestic support for that. nor should you tbh, we should not suffer for the sake of everyone else. we don't want the dollar quite this strong but it's better than the alterantive.
regardless it's not all our choice. people will keep fleeing to the dollar for stability and that will strengthen it relative to other currencies. believe me this is not all fed policy or even mostly fed policy, we still have a lot of inflation so domestic winds aren't making it that strong. this is a "relative basis" thing. besides, what do you think the RoW impact would be if there was no safe currency to flee to?
and lastly petrodollar go brrrrr, energy crunch means we will have a strong dollar like it or not.
