I guess the market no longer hangs on every word of Fed Chair Jerome Powell. On Tuesday he re-re-iterated the importance of additional fiscal stimulus and noted that he thinks the “risk of overdoing it” are smaller than underdoing it. And on Wednesday, President Trump effectively killed the fiscal stimulus bill. Well, put it into a short-lived coma may be the more appropriate way to put it. I encourage you to see what my colleague Tom Block has to say on this. See page 9.

This week the Fed released the minutes from its September 15-16 meeting. And for diehard Fed watchers, as always, there were a couple of sound bites worth noting. Most FOMC forecasters were assuming that an additional pandemic-related fiscal package would be approved this year. And noted that without a package, growth could decelerate at a faster-than-expected pace in the fourth quarter.

Relating to its new average-inflation-targeting regime the minutes actually refer to the program as flexible, which I would say is an understatement. Without defining what letting inflation run moderately above 2% means, the FOMC has left it up to us to interpret what the new policy will entail. And this week, Chicago Fed President Charles Evans gave us some insight mentioning that he would be “pleased if we could g...

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