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(an email exchange)

>
>   On Tue, Jun 10, 2008 at 8:12 AM, anonymous wrote:
>

>   Fisher’s remark induces one to wonder if Ambrose Evans-Pritchard is
>   correct in stating that Fed policy is now being concocted from Dallas.
>
>   The recent spate of criticism directed at Bernanke and Fed doves by
>   various current and past Fed officials, including Paul Volcker, implies
>   that there has been a revolt within the Fed. Mishkin’s resignation
>   supports the view that the hawks have won.
>
>

Agreed. I’ve been calling it a ‘palace revolt’.

Bernanke’s limit was inflation expectations as anticipated back in August, but he let it go a lot further than I thought he would.

The dallas crew is confused on a lot of things as well, but inflation expectations are the unifying force of the FOMC right now. When Yellen cried uncle, that was my signal.


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