Via Real Time Economics, a decidedly well crafted message

I am at the moment in a position that I’ve called essentially patient vigilance–meaning that I want to see how the economy evolves before drawing conclusions that more stimulus is needed and could actually have the effect where the benefits would outweigh the costs. I don’t rule it out.

By laying out the choice in this way Lockhart both loosens Fed policy and strengthens long term credibility. Essentially we see a re-weighting of the Fed’s loss function rather than an adjustment to its optimal rule or distribution in economic estimates.