The expected result of cheap money and low inflation

 Falling share, bond and other asset prices are actively helpful to the Fed. They make people poorer, encouraging them to save more and spend less.

This is the opposite of the so-called “wealth effect” the Fed relied on to boost inflation during the past dozen years. The policy of superlow interest rates and trillions of dollars of bond purchases created the Everything Bubble, with prices of virtually every U.S. asset hitting new highs. As the Fed reverses course, so the Everything Bubble is going away.

Until late April, the weakest junk bonds, those rated CCC, had fallen mostly in line with Treasurys. It was only last month that they sold off much more than safe government bonds, as fears rose that Fed tightening would create trouble in the economy.

James Mackintosh WSJ 14 June 2022

https://www.wsj.com/articles/the-fed-pricked-the-everything-bubble-11655215752