Ahead of this week's FOMC (here are just two previews earlier from the torrent):

A writer at Brookings does not focus on this meeting (statement is due at 1800 GMT on Wednesday 4 May, Powell follows at 1830GMT) but instead gives some reasons to be cheerful on a better performance from the Fed to come. In brief:

  • The Federal Reserve has come in for considerable criticism, much of it deserved, for being slow to understand and react to high and persistent inflation pressures.
  • A soft landing for the economy now—bringing inflation down to the neighborhood of 2 percent without a recession—will, in the words of Janet Yellen, require skill and good luck.

And:

  • I can assure you from personal experience that, from the perspective of being open to new ideas and diversity of thought among policymakers and staff, this is not your grandfather’s Fed.
  • The evidence of the last six months indicates that, in contrast to the 1970s, today we have a Fed that will carefully weigh all the factors, conduct good dispassionate analysis of developments, and adapt to changing circumstances—even if, on occasion, it takes a little longer than some of us might have wished.

I guess the 'take a little longer than some of us might have wished' is the problem. Its been far too slow to adjust. Then again, not as slow as the RBA.

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