Janet Yellen actually said...

So we are seeing a recovery, I would say, in housing. It has gone on now for a number of years, but it is very, very gradual.

It is essentially a theory that fits reasonably, but certainly not perfect, explaining the inflation process.

Every Fed Chair that I can remember has come and told Congress that this is a looming problem with serious economic consequences.

If the Fed had been forced to follow such a rule in recent years, millions of Americans would have suffered unnecessary spells of joblessnes...