High CPI Screams Recession and Bear Market

I've posted the ratio of the 10yr2yr before to show escalating waves of central bank intervention. It keeps growing and may continue to do so until something finally breaks this cycle that goes back to the crash of 1987, when the Fed first took upon itself the role of smoothing financial market volatility.

Here's another similar chart, but with different variables: PPI minus CPI. Every spike like the one underway now (and this one is the biggest) produced a recession and major bear move in the stock market.

People say the Fed is walking into a policy error. Their errors were already made when they pumped the market. The question, as always, is the one asked by Von Mises: will they voluntarily abandon the inflation or will they eventually destroy the currency system? Right now, the Federal Reserve is signaling voluntary abandonment. For however long that lasts, look out below. My expectation, my forecast, is that the Federal Reserve is going to wait longer than the bulls expect because it does not want to launch QE5 with the PPI still running hot. Whether that is in time or price, I cannot say. IF it takes longer, maybe crude at $50 is good enough for the Fed (an exmaple). If crude plummets to $40 by February, maybe they will reverse course much sooner. Either way, when Powell's "printer" is away, the bears will play.