The WSJ Fedwatcher is out with his latest
Federal Reserve officials expressed glimmers of trepidation before hiking rates, WSJ Fedwatcher Jon Hilsenrath said.
He highlighted this paragraph:
"Members stressed the potential need to accelerate or slow the pace of normalization as the economic outlook evolved. In the current situation, because of their significant concern about still-low readings on actual inflation and the uncertainty and risks present in the inflation outlook, they agreed to indicate that the Committee would carefully monitor actual and expected progress toward its inflation goal. In determining the size and timing of further adjustments to monetary policy, some members emphasized the importance of confirming that inflation would rise as projected and of maintaining the credibility of the Committee's inflation objective."
The thing is, if inflation doesn't rise like the Fed thinks, their credibility is shot. There is hardly a person there who won't be dead wrong.
