The Fed Continues Trying to be Insane

The Fed did the right thing, and moved in the right direction, though in part for the wrong reason today.

Go to Tim Duy for the rational approach. For me, I quote the Fed

Inflation is expected to remain low in the near term, in part because of earlier declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of past declines in energy and import prices dissipate and the labor market strengthens further. [emphases mine]

check the market


and conclude that, with one exception, the only question worth asking is, “What color is the sun on the planet of the Fed Governors?”