FOMC during the bubble defltation

Frances Coppola tweets:

Working my way through FOMC minutes from 2004 to 2008. Fascinating. The FOMC members primary concern is always exactly the same.

Their concern is always that core inflation will "fail to moderate" - even when staff projections are that it will fall.

But they are always really upbeat about growth, even when staff projections are that growth will fall. They ignore their own staff.

And they ignore markets, too. Investors were pricing in lower rates due to falling growth expectations from Jan 2007 onwards.

But the FOMC? Nah. Main risk in their view was inflation (even though it was falling). They kept interest rates elevated.