Nevertheless, speak like Yoda, he does not, still:
Eschaton: Everthing's Terrible It's All Our Fault And We're Not Going To Change. The sociopaths at the Fed have spoken.
I've swung around to the view that Barack Obama's decision not to replace Ben Bernanke with Larry Summers was his worst unforced error, and his biggest mistake in governance.
Felix Salmon is equally unhappy with the Federal Reserve:
Monetary policy: Fed next: [T]he Fed is acknowledging that inflation levels are not presently consistent with its price stability and full employment mandates.... [T]he Fed indicates that it is willing to take additional action to move inflation back to a level consistent with those mandates. A very reasonable question to ask is why the Fed opted not to act now....
It does seem, however, that this statement is moving the Fed toward additional easing.... Sadly, we'll have to wait until November for the next scheduled meeting and the Fed's next bite at the apple.
At this point, it seems silly to speculate about what's going on inside the FOMC. We've all looked into our crystal balls and wondered why the Fed hasn't yet acted, and there's little more to be said on this front. The bottom line is that the Fed could and should do more and most observers—including those drafting the Fed statements—seem to acknowledge this. It's a shame that we'll have to wait two more months, at least, to see something done at last.