How flexible is the Fed really?

In his Jackson Hole speech, Fed Chair Jerome Powell revived Greenspan-era arguments that policy should be flexible and follow a “risk management” approach, but we doubt this amounts to much in practice. The Fed appeared to follow policy rules closely in the 1990s & 2000s and the same is likely to be true this time around, suggesting that the Fed’s tightening cycle will end sooner than most anticipate.