The Fed announcement

Get the details almost anywhere else, read Scott Sumner too.  I’ve been tied up, but I have been able to follow my Twitter feed.

Evan Soltas wrote:

It needs to be said that today’s FOMC statement is a major intellectual win for econ bloggers and academics.

Neil Irwin:

What they’re doing is basically the Evans approach minus explicit numerical targets for unemployment/inflation that trigger tightening.

Ross Douthat:

When the true history of the Obama era is written, it will be a joint biography of Ben Bernanke and John Roberts.

Binyamin Applebaum:

Bernanke: We’re not trying to increase inflation, but we might act more slowly to reduce inflation if it should happen to happen.

I say the rate of price inflation is going up.  I see this as a free lunch, and I am quite curious to find out just how big or small of a free lunch it is going to be.