FOMC review: Officially behind the curve and proud of it

The Fed is now officially behind the curve and Jay Powell is even proud of it, but he made a potentially costly mistake by admitting to having to quantify what a moderately overshooting inflation rate means as soon as inflation overshoots the target. The Fed sounded more upbeat on economic projections but also kept referring to the fact that they want to see actual progress and not forecasted progress before changing anything in the policy framework. Powell made a mistake by admitting to having to quantify what a moderately overshooting inflation rate means as soon as inflation actually overshoots target. This … (full story)

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