An interesting exchange this morning from my colleague @greg_ip and NY Fed President John Williams: Greg asked about the idea that the Fed should raise rates "as a gesture of asserting your credibility" given how the risks are now on the inflation side? Williams: "The way you maintain the credibility that's been built up over decades is by making the best decisions you can given the data we have, rather than trying to use monetary policy to affect credibility." The words "rather than" suggest Williams doesn't agree with the premise nested behind Greg's question. And the word "maintain" perhaps implicitly rejects the idea the credibility needs a restoration.(Nick Timiraos)