We have argued for many years, investors were incorrectly focused on the Fed policy as a leading indicator. Except during the Volker era, the Fed has almost always been a lagging indicator. In other words, the Fed tends to react to the economy rather than guide the economy. Today’s Fed has emphasized it is sticking to that lagging indicator decision-making model.
RBA Special Report: The Fed's lagging policy and inflation
May 28, 2021