Inflation and benefits of liquid assets

The most difficult issues for 2022 are inflation and rising interest rates. The Federal Reserve has been supportive/dovish for 30 years, and is now shifting its focus to fighting 40 year high inflation of 7%+ through a combination of tapering its purchase of securities, removing trillions of dollars from the its balance sheet, and raising interest rates, possibly 3 to 5 times in 2022.  The Fed is finally taking away the proverbial “punchbowl” of liquidity that has buffeted the markets for over 30 years.

 What can one do with these negative forces and tidal shift by the Federal Reserve that has caused negative returns in general market indices that will likely persist through 2022?

 For those more risk adverse and seeking primarily income:  We have been buying Senior Secured Corporate Loan CEFs (closed end funds) which adjust upwards with LIBOR so they defend against a rising interest rate environment.  They are now paying as much as 7% - 7.5% (annual rate distributed monthly) up from 6% in October.