I am somewhat disappointed both by the mildness of the statement and the once again triple dissent. Kocherlakota signaled that this was going to end. It doesn’t look good for Fed creditability. It also signals that the Fed can be politicized. Neither are good.

I am also not sure what to make of adding that line

–including low rates of resource utilization and a subdued outlook for inflation over the medium run —

to the Funds policy statement. My gut tells me that it was intended as a harmless clarification by a Chairman obsessed with transparency.

However, as a traditional Fed watcher I would read that statement as tightening Fed policy, as it makes the promise seem more conditional.