US Bond Market Week in Review: The Fed is Determined to Get Inflation Wrong

            Today, the Federal Reserve issued their latest monetary policy statement, keeping rates at 1%-1.25%.  They describe the economy as expanding moderately: the labor market continues to grow, households are spending and investment is picking up.  But they once again argued inflation would reach 2% in the medium term.  The evidence doesn’t support this conclusion. If the Fed raise rates later this year, they will be making a policy mistake.