The FOMC made its policy decisions today, and as expected, there were no changes to the policy. The most significant take away in our opinion, is that the Fed expecting transient inflation. Most committee members expect inflation to rise this year, with a median estimate of 2.5%, after which they expect inflation to drop back down to 2% in 2022. Hence, while bond market vigilantes and private forecasters can continue to talk about inflation, the Fed intends not to move until their full employment objective is met and will be patient on inflation. Monetary accommodation continues!