From a presentation by Janet Yellin (of the San Francisco Fed) on June 30 to the Commonwealth Club of California,
I will be the first to say that it is always difficult to get monetary policy just right. But the Fed’s analytical prowess is top-notch and our forecasting record is second to none.
But Yellen didn’t stop there. She followed up with:
The FOMC is committed to price stability and has a solid track record in achieving it.
Really? The same Fed that presided over a 90% depreciation in the purchasing power of the dollar?
And finally, she finishes up with:
With respect to our tool kit, we certainly have the means to unwind the stimulus when the time is right.
See my thoughts on that here.