Over the past year, the Federal Reserve and the various European central banks have raised rates more than at any time since 1981. Short-term interest rates rose above long-term rates, creating the steepest yield curve inversion in decades. At some point, the consequences were bound to be felt. As such, we’ve spent much of the last six months warning that central bankers were going to find themselves in a dilemma, having to choose between fighting inflation and financial stability. What is particularly disconcerting is that policy rates remain far below the rate of core inflation. For example, the Fed has its rates ...