The two Charles are Yellen too much

Fed’s Evans Is Willing to Risk Higher Inflation to Boost Hiring

Federal Reserve Bank of Chicago President Charles Evans said Friday the central bank should be willing to allow inflation to go over its 2% target if that will help the economy get back on track more quickly.
“We need to repeatedly state clearly that our 2% objective is not a ceiling for inflation,” Mr. Evans said in the text of a speech.
“A slow glide toward our goals from large imbalances risks being stymied along the way and is more likely to fail if adverse shocks hit beforehand,” the policymaker told an audience at a conference in New York held by the University of Chicago Booth School of Business. “The surest and quickest way to get to the objective is to be willing to overshoot in a manageable fashion.”

We can start the layoffs immediately and thus avoid the hassle of repricing later on. 
 
But Charles Plosser says we can ignore the other Charles: Fed’s Plosser: Models Hint Rates Should Rise ‘Very Soon’

Many traditional models of monetary policy would suggest the U.S. central bank might need to raise interest rates quite soon, Federal Reserve Bank of Philadelphia President Charles Plosser said Friday. “Most formulations of standard, simple policy rules suggest that the federal funds rate should rise very soon–if not already,” Mr. Plosser told a conference sponsored by the University of Chicago‘s Booth School of Business. Mr. Plosser said the Fed’s communications strategy has been confusing because policy makers have made it clear they can change their minds any time. Mr. Plosser, a critic of the Fed’s bond-buying program, noted that the commitment to keep rates near zero until the jobless rate falls to at least 6.5% is no longer very useful now that the rate has already fallen to 6.6.%. “The 6.5% threshold will soon become irrelevant, and it probably is already,” he said. “Communication about the future path of asset purchases has, at times, been imprecise and confusing.”

Great, we can raise prices immediately and skip the lay off thing.

 Then Yellen says she is ready to make a bad outlook worse:

A measure of U.S. corporate credit risk is heading for its biggest monthly drop since October, as the Federal Reserve reassured investors that its monetary policy remains dependent on the economy’s progress. The Markit CDX North American Investment Grade Index, a credit-default swaps benchmark used to hedge against losses or to speculate on creditworthiness, declined 8.9 basis points for the month to 62.4 basis points, after decreasing 1.2 basis points today as of 1:50 p.m. in New York, according to prices compiled by Bloomberg. That’s the steepest monthly decline since October when the gauge fell 9.1 basis points. Investors pushed the index lower this month as turmoil in emerging markets eased, consumer confidence increased and Federal Reserve Chair Janet Yellen said yesterday that if there were a “significant change” in the economic outlook, the central bank might reconsider the strategy of gradually reducing its monthly bond purchases, signaling the Fed will continue to support the economy.

At least she tells the truth, in her own backwards language.