how the Fed can get itself out of this situation without seeing a severe economic crash

I mean, it seems like just growing out of it is working. There's financing costs for everyone who overleveraged or chose short terms for their debt... but that's why there's always a premium on term periods (longer terms give stability) and any reasonable person diversified rather than assuming low rates were here forever.

The money form COVID was a short term shock, it's being pulled out now, just at a slower pace (and in some cases being allowed to let growth gradually overtake it).

Housing remains an issue; but it has been on the radar for a while (basically since the 2008 recession): https://econofact.org/the-housing-shortage-and-the-policies-to-address-it