mishtalk.com / Mike “Mish” Shedlock / August 16, 2017
Minutes of the July 25-26 FOMC Meeting show internal concern over the Fed’s inability to hit 2% inflation.
I counted 89 instances of “inflation” and 79 instances of “2”. As sub-categories of 2, there were 27 instances of “2 percent” and eight instances of “below 2”.
“Longer” came up 26 times. “Transitory”, a previous standout, only came up twice. “Idiosyncratic” a new buzzword courtesy of the Cleveland Fed, came up once.
- Beyond 2017, the forecast was little revised from the previous projection, as the recent weakness in inflation was viewed as transitory.
- Some members stressed the importance of underscoring the Committee’s commitment to its inflation objective. These members emphasized that, in considering the timing of further adjustments in the federal funds rate, they would be evaluating incoming information to assess the likelihood that recent low readings on inflation were transitory and that inflation was again on a trajectory consistent with achieving the Committee’s 2 percent objective over the medium term.