Minutes of the FOMC meeting reconfirmed that the FED plans to tighten policy until they see clear and convincing signs of lower inflation. Markets have taken a beating, but spill over to lower inflation dynamic is yet to be seen. Getting inflation under control is still the Fed’s number one priority. Since 2008, the fight has been against too low inflation, and the central bank has therefore responded to market weakness by easing policy, trying to stop a spillover to the real economy. In the current environment, the fight is against too high inflation and the Fed’s response is understandably different. {chart} ... (full story)