Six years ago, I wrote a post that reflected my view of the proper relationship between the Fed and the markets:

That’s not Bullard’s job.  He hasn’t been hired to outguess the markets.  If he wants to do that he should go run a hedge fund.  His job is to be led around by the markets like a stupid ox with a steel nose ring being dragged along by a farmer.

Here’s a Bloomberg headline, reacting to today’s Fed decision:

Congratulations, Market. The Fed Is Officially at Your Mercy.

So am I ready to declare victory for market monetarism?  Not quite.  We still need a NGDP market.  TIPS spreads and stock market indices are better than nothing, but there’s no substitute for a NGDP futures market.

But we are making real progress.  The Fed is not using macro “models” to set interest rates.