Trying to understand economic policy and what dictates what should come next is like looking at a black box that should produce gold but instead produces bubble bath froth. It is clear that the Fed lost its understanding of what it was about and that is because too too many American economists were steeped in a nice glossy theory without dept of history that shows the many shades of grey. It would seem the only way to solve the Feds dilemma is to replace all its crazy economists and teach a new crowd how to construct a relevant price index that captures Friedman's original ideas. The American economists deserve a 'D' failure grade because they dud not understand what their professor was saying. So let inflation flip to force interest rates up and your grade falls to an 'F'.
Hmmmm!
http://www.project-syndicate.org/commentary/federal-reserve-end-of-monetarism-by-anatole-kaletsky-2015-09?utm_source=Project+Syndicate+Newsletter&utm_campaign=f57694c6e9-George_Soros_Rebuilding_Asylum_System_9_27_2015&utm_medium=email&utm_term=0_73bad5b7d8-f57694c6e9-93479177
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"We often know more than we can tell .." MIchael Polanyi
"We 'always' know more than we can tell .." Arthur Lake 2015