The Fed did not hike, as expected. The Fed also shed no clues as to when it will hike. Instead, the Fed offered a statement it has been making for five years or so: The Fed expects inflation to rise to 2% ‘over the medium term’.

Medium Term

Inquiring minds may be interested in a google search for the words “Fed medium term
There are dozens of pages on the “medium term”. Since results are date-sensitive, the recent pages consist of links that are mostly from the “near term” but I did locate a reference from 2012.


FOMC Statement

Those who wish to be bored to tears can read the today’s complete FOMC Statement. Rest assured it said nothing.

Soliciting “Medium Term” Opinions

Fed is Clueless

The Wall Street Journal reports Fed Leaves Policy Rate Unchanged, Offers No Hint on When It Might Next Move

Why no hint? Because the Fed is clueless. It has no idea when it will hike or what economic conditions will look like next quarter let alone the end of 2017.

But the Fed cannot come out and say “We are clueless, and making decisions by the seat of our pants”.

Everyone would be shocked to hear the truth, even though anyone with a modicum of sense already knows the truth.

Mike “Mish” Shedlock