The Fed has been running a very steady monetary policy for several years now, but the debate over the Fed is unsettled. At Bloomberg Opinion, I run through some of the arguments and suggest which ones matter.
On the question of whether the Fed is being too aggressive, some agnosticism and equanimity are called for. If the Fed has erred in either a hawkish or a dovish direction, it has erred only slightly. . . .
Both unemployment and inflation remain significantly below the average of the last 50 years. Expected inflation is running near the Fed’s 2 percent target. You can’t reasonably ask for a much better performance, especially if you accept that inflation target.
We should use this moment of relative monetary calm to consider deeper questions, such as whether that target is the right one.