At the Fed, It’s G-star Versus L-4-L
Wednesday’s Fed meeting is unusual because the focus will be less on getting rates right this month or even this year than fixing the Fed’s overarching long-run strategy. The FOMC is almost certain to update its balance sheet plans. It could also adjust its communications — including possible elimination of the dot plot and an announcement regarding a change in the way the Fed pursues its 2% inflation target. This week, in addition to an FOMC preview, we explore how the Fed’s short-run obsession with containing economic growth to prevent inflation prevents it from achieving its long-term inflation goal.Plus "The Week Ahead," a preview of next week’s potentially market-moving events.