Warning: the Fed Just All But Admitted That It's WAY Behind the Curve

Jerome Powell knows the Everything Bubble is in serious trouble.

In his prepared comments for US Congress, released yesterday, Fed Chair Jerome Powell stated:

If we do get behind and the market does, the economy does overheat... then we'll have to raise rates faster, and that raises the chances of a recession…

First and foremost, Powell is "floating" this idea because he knows full and well that the Fed IS already behind the curve on inflation. Several of the Fed's own in-house inflation metrics are already well north of 2% if not 3%.

Buckle up, because Treasury yields are exploding higher having broken their long-term trendline.

Let's be clear here. The Fed is terrified of the Everything Bubble bursting. And we're a lot closer to a crisis than most realize.