The Fed's rosy worldview rests on a misleading premise

The Federal Reserve’s credibility is increasingly under scrutiny as it insists on raising interest rates despite signs of continued weakness in the labor market and, importantly, an inflation rate that refuses to climb to the central bank’s official 2% target.
Fed officials often say their decisions about interest rates are data-dependent. However, this description has been tested lately by inflation figures that keep falling despite official assurances that downward pressures on gro