The Minutes quote that says it all

Some participants suggested that, at some point, it might become necessary to revise statement language to acknowledge that, in pursuit of the Committee’s statutory mandate and consistent with the median of participants’ policy rate projections in the SEP, monetary policy eventually would likely gradually move from an accommodative stance to being a neutral or restraining factor for economic activity.”

As if for the past eight years at least, monetary policy had not been a restraining factor!

The charts illustrate it vividly.

[Note: FG= “Forward Guidance”, introduced by the Fed at the August 2003 Meeting]


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