The Fed Should Not Do QE or QT

The best policy for the Fed here is to freeze the balance sheet and normalize interest rates. Instead of doing QT, announce there will never be QE again like was done the past 13 years. Throw it out of the toolkit except as a one-off bailout mechanism (nobody would believe they'd freeze the balance sheet forever). Instead, QT will inevitably lead to more QE and the economy will remain trapped on the Fed's wheel of suffering.