- CPI surged to over 8% YoY and has been above the Fed's 2% target now for 15 months - yet the target policy rate is today at only 0.75% to 1.0%.
- If the Fed is determined to restrain inflationary expectations and regain lost institutional credibility, it is imperative to insulate its inflation-fighting policy resolve from the unavoidable pressures associated with market instability.
- Fed policy has certainly not been speeding hurriedly to pull us from the wreckage wrought by runaway inflation.
For further details see:
Weekly Commentary: Inflation Acquiescence