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2026-02-19 09:25:41
[“Fed’s mouthpiece”: Key change in January minutes – Inflation target timeline disappears] Nick Timiraos, often referred to as the “Fed’s mouthpiece,” writes that sometimes what the Fed doesn’t mention is more interesting. He points out that in every meeting last year (up to December), staff predicted that the inflation rate would return to 2% in 2027; in December, this forecast was pushed back to 2028. However, in the newly released January meeting minutes, staff did not give a specific timeframe for when inflation would reach 2%. The minutes only show that compared to the December forecast, the current forecast is “slightly higher, remaining balanced,” and that the impact of tariffs is expected to end by mid-year, at which point inflation will return to its “previous downward trend.” The key statement in the December minutes that inflation would “reach 2% in 2028” has disappeared from the January minutes.
