While most look at interest rates to gauge the Fed’s monetary policy, this time around it’s Quantitative Tightening (QT) that’s more important, in my opinion. This article from Vanguard Advisors provides a very nice analysis.
As it states, the Fed hasn’t done anything like this before, not in this scale, anyway. I think markets are still blind to the negative effects of constantly draining such large amounts of liquidity from the system. According to Vanguard, the Fed is looking to drain around $4-5 trillion over the next 3 years. That’s truly unprecedented.