Top officials at the Federal Reserve were seeing inflation data come in very hot for months before policymakers moved to wind down monetary policies that were stimulating the economy.
A chorus of analysts, economists and former policymakers have chimed in, saying that was a mistake.
“The forward guidance, overall, slowed the response to the Fed to the inflation problem” former Federal Reserve Chair Ben Bernanke told CNBC.
Treasury Secretary Janet Yellen also acknowledged the misdiagnosis coming from her own department, and that of current Fed Chair Jerome Powell.
“Both of us could have probably used a better word than ‘transitory,'” she told senators in June when asked about their remarks…