It is quite clear that the markets understand Fed policy to a much better extent than before.
"William Poole", also known as "Bill the Butcher", was the leader of the New York City gang Bowery Boys, a Bare-knuckle boxing/bare-knuckle boxer, and a leader of the Know Nothing political movement.
File:Newspaper article on the murder of William Poole ( Brooklyn Eagle, March 10, 1855).jpg/thumb/Brooklyn Eagle, March 10, 1855 (partial)
File:Newspaper article on the murder of William Poole ( Brooklyn Eagle, March 20, 1855).jpg/thumb/Brooklyn Eagle, March 20, 1855
More William Poole on Wikipedia.It is highly desirable that policy practice be formalized to the maximum possible extent.
What we need to do is to allow the market ample room to take care of that problem, which the market is in the process of doing.
It will be in the interest of future Fed chairmen to commit to pursue policy regularities that work well.
The market has a high degree of confidence the Fed will avoid.
We don't have any schedule in front of us.
Maintaining inflation stability is the central responsibility of the central bank. But we don't want to be in the situation of over-reacting and driving the economy down.
Our aim is to keep inflation, in general, down. If I had to pick a point, it is to keep these broad measures in a one to two percent range.
I see no reason why we should not see a similarly benign inflation outcome this year.
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