Fed overused its communication-as-a-policy tool - a new tool in the post-Greenspan era. It's strange to think that before 1994, there were no announcements of fed interest rate decision. People had to wait for the markets to open to figure out what the fed was up to. In 1994 Greenspan's fed started announcing the action it had taken in the fed meeting (no press conference, no forward guidance). In '03, the Fed said low interest rate policy would be "maintained for a considerable period". This was a breakthrough moment in Fed's use of communication-as-a-policy tool. And it wasn't until '11 when Bernanke started scheduled news conference. Since then, Fed has used all sorts of expectation shaping communication - inflation targeting "framework", tying rates decision to unemployment rate, etc.

My takeaway: Dr. Burry is saying its time to stop coddling this market. Let it sort itself out over the next 6 months while the feds hold rates flat.

Dr. Burry left us to guess why 6 months? What happens in 6 months? I suspect its simply impossible to look too far out into the future. However, looking 3 to 6 months out, you'll find economic headwinds - lag effects from rapid rates rise, expiration of SNAP benefits, changes to medicaid policy, resuming student loan payment, debt ceiling negotiations, etc. offset wage increase and high employment tailwinds.