Fed official Hamak recently expressed a rather candid opinion—he said that formulating monetary policy is really quite a headache right now.

The official candidly stated that it may take another year or two to bring inflation back down to the target of 2%. Interestingly, he also reflected on this: the mistakes made by the Fed in controlling inflation are far more serious than those concerning stabilizing employment. Implicitly, this suggests that there may have been some carelessness in past judgments regarding inflation.

For investors concerned about the direction of the macro economy, the signals conveyed by this statement are clear — don't expect a quick shift to easing policies; the tightening cycle may last longer than expected.