Justin catches one very important thing that my recent post on the FOMC statement neglected to zero in on:

Fed admits it failed: “inflation over the medium term will run at or below the rate that it judges most consistent with its dual mandate.”

For reasons I will explain in my upcoming post “Optimal Monetary Policy: A Primer,” the translation of the Fed’s phrase that Justin highlights is:

It turns out we had monetary policy too tight in the last while.  If only we had known earlier where we see the economy is headed now, we should have been more expansionary, using balance sheet monetary policy.