The fed is in between a rock and a hard place. Once upon a time, asset prices were low relative to incomes - and assets people cared about day to day like housing generally weren’t terribly competitive.

The fed started rate targeting, and asset prices started rising as the economy adapted to Fed policies. 50 years later assets like homes regularly exceed individuals lifetime earning potential.

If interest rates rise, these asset prices must fall. If they fall, then someone is on the hook as a counter party. The fed bailing out the banks with more free money kicks the can down the road.

Best case scenario is a steady inflation that raises incomes closer to assets. However this inflation effects boomers, millennials, and gen z differently- there is no easy solution.

But swinging between 0 interest rates and bailouts won’t help things.