William Lee of Global Economic Advisors says the Fed needs to re-establish its inflation credibility while avoiding policy moves that could choke off growth. He points to a sharp rise in credit, particularly in private markets, and says policymakers need to watch whether that funding is creating excessive risk. Lee also argues the Fed should rely on better, more timely data as it weighs the path for rates. He says the economy remains robust but increasingly K-shaped, with asset owners benefiting more than workers, raising risks to consumption and employment if rates move higher.