I recently listened to David Beckworth’s interview with Tim Duy. Tim is one of most talented Fed watchers, and had a number of astute observations about the way the Fed communicates. At one point David was asking why the Fed seemed to be behind the curve in 2008. Duy said something to the effect that the Fed hadn’t expected to encounter a situation like that, and wasn’t quite ready to deal with the need for policy alternatives at the zero bound. (Not his exact words.)