RE:What a predicament....you are too pessimistic.
We have hit the limits of interest rates. maybe 25 bps for good measure. The system is breaking all the CBs know this. Biden and Warren are not going to let the Fed destroy the economy, not a chance in hell.
The CBs will pause for the forseeable future. Nobody cares about inflation if the banking system collapses.
Britain had a scare, US has had a scare, now. Pakistan, Turkey, Egypt, Sri Lanka and various African countries are on the verge, or are in collapses.
THE FED IS DONE after whatever March brings, maybe .25.
The depression was a result of tightening, effectively. They are not going to do that. They are loosening right now with loan facilities and likely a repo operation to come.
Then next interest rate move after March is a cut.
US election season starts in the fall.