Central banks try to find the right response to a problem they did not think could happen

Some of the rise in inflation is still temporary, but much will need to be squeezed from economies without anyone knowing exactly how much pressure to apply. This means the dangers of excessive tightening are as great as continuing to do too little, too late.

In such a difficult world, no one should rule out recessions in the year ahead. The Fed is probably correct to raise interest rates hard, but the truth is that we really don’t know.

Chris Giles FT 23 June 2022

https://www.ft.com/content/f6cc9826-b31c-42d4-93da-8f71c9ddd32a

The May 2007 BoE annual report, endorsed by Lord King, then the Bank’s governor, said financial stability risks “appeared to be low”. 

It was almost the eve of the financial crisis. 

https://englundmacro.blogspot.com/2016/03/top-10-hits-and-misses-from-lord-kings.html