The Fed Should Peg Rates to Reality, Not to Its Stale Forecasts - NewsBreak

October 8, 2021 10:11 am (EST) Last week we learned that August core PCE inflation, the Fed's preferred inflation measure, hit 3.6 percent for the third consecutive month. Yet as the evidence mounts that current inflation is not merely "transitory," and the Fed raises its inflation forecasts in consequence, the Fed's guidance as to when it will raise its policy rate above 0-0.25%, where it has been stuck since March 2020, has barely budged.