The Federal Reserve (Fed) released its new policy framework, formally known as the Statement on Longer-Run Goals and Monetary Policy Strategy, late last month in connection with Chair Powell's Jackson Hole speech. After that, it is not surprising the September FOMC meeting failed to provide any fresh headlines. The key question now is how does the Fed actually implement this new approach. There really is no precedent to go by, and the "assembly directions" have significant potential for misinterpretation by the markets.
As a reminder, at the heart of this new framework, the policymakers will