Says CPI is well below Fed’s target
– Fed risks giving the impression it’s abandoning inflation target
– Fed is sending the message that it’s not committed to getting inflation back to target
The credibility of the Fed is his fear and that raising before targets are met might reduce that. It follows what I said about the PCE data and Mester touched on it about being proactive. There’s members that want to wait to be sure and there’s members that want to anticipate.