Adam Kobeissi Drops a Truth Bomb: Fed Caught Between a Rock, a Hard Place, and 3.5% Inflation

Macroeconomist Adam Kobeissi is here to ruin your Friday vibes, and it looks like the Fed's worst nightmare is finally here. According to Kobeissi, the risks facing the central bank are stacking up like unconfirmed transactions during a mainnet congestion event, and the current economic landscape is basically the stuff of policy nightmares — the kind that wake you up sweating at 3 AM wondering about yield curve inversions.

The core problem? The Fed has a serious limitation: it can only tackle inflation from the demand side. Supply-side shocks? That's outside its wheelhouse, kind of like how your hardware wallet can't actually force the Bitcoin price to go up. And right now, energy prices are surging, creating exactly that kind of supply-driven inflationary pressure. When the Fed faces this type of scenario, it's basically forced to go full aggressive mode on demand suppression — which is about as subtle as a NFT floor price dropping 90% in a day.

Kobeissi pointed out the irony of it all. Back during the 2020 pandemic, demand collapsed faster than a shitcoin's market cap after the developer dumps