[This piece has been published in Restoring America to highlight how the Federal Reserve’s strategy to combat inflation could actually make it worse and send our economy into a recession.]

Among the more striking consequences of the Federal Reserve’s shift to a more hawkish monetary policy stance has been the swing in wealth creation from strong household wealth creation last year to rapid household wealth destruction this year. Yet despite past evidence that sustained changes in wealth do lead to changes in aggregate spending, the recent unusually large swing in household wealth is not getting the attention it deserves as another recession risk.