My view is that the LSAPs continue to provide meaningful support for economic activity but perhaps less than what the FRB/US estimates suggest. Although the channels may not be working perfectly, it is unlikely that they are not working at all.
In particular, the so-called “core inflation” for December – excluding food and energy components – has been disappointing: it fell to 0.9% because wages still aren’t growing sufficiently. But aren’t you afraid that there may be structural reasons for this sluggish price movement?