FOMC Minutes - 2025-05-27

In the every-five-years review of Strategy, Tools and Communications, the committee is struggling with the "flexible inflation targeting" idea introduced in 2020. Warning: the language on that is likely to be changed to permit the Fed more scope to abandon the strategy when they feel like abandoning the strategy (as they actually already did in the not-transitory inflation of 2021 and 2022). And of course, there's all the usual handwringing about tariffs and other Trump policy possibilities, the likes of which we've never seen from them before with respect to any other president. The bottom line is "wait and see." They could have saved a lot of time by just asking us on that one.