Fed may target inflation to deflect deflation

I think the FT gets it right in its story's lede on the latest Fed minutes--the U.S. is establishing a de facto inflation target to shore up the public expectations of positive inflation, and so make it less likely that a deflationary dynamic could take hold.

Paul Krugman and others have been warning about how monetary policy may no longer be effective, and how important inflation expectations may be in encouraging spending and boosting demand, and hence snapping us out of a depression/deflation problem.

Notice how the WSJ buries the inflation target news at the bottom of its story.