Fed Footing

In yesterday’s Fed announcement, there was no mention of tapering, twisting, let alone rate raising, and rate liftoff is still not expected until 2023. Moreover, despite trillions in stimulus, Fed forecasts of GDP, inflation, and unemployment for 2022 and 2023 barely budged; at most by two-tenths of a point. This tells us that despite massive stimulus with big short-term effects, long run influences, including inflationary impacts, are at best, minimal.