I approve of the Fed’s turn towards recognition of inflation as the primary threat to the US economy. I can’t understand why they are still doing QE on any scale. Perhaps they will learn the lesson that being specific @ future intentions is dangerous b/ of what it locks you into.
I don’t understand the communications strategy behind causing major volatility during the press conference rather than delivering all the messages in the FOMC statement.
The Flexible Average Inflation Target (FAIT) framework taken seriously would require a period of sub 2 percent inflation to offset what we are now going thru.
I trust Fed will abandon this misguided framework and the associated no preemption and lift off only when full employment is conclusively proven.
More broadly I hope forecasting errors of the last year are a cause for soul searching & we can return to recognizing what has been lost in recent yrs: Overheating the economy means a temp gain in employment & permanent increase in inflation until there is an offsetting slow down
• • •
Missing some Tweet in this thread? You can try to
force a refresh
