Larry Kudlow at the NRO needs to do some reading. When he raises his usual objections to inflation targeting and the Taylor-type rules that implement such policies, he says:
Are any of the Fed bigwigs in Jackson Hole watching the market price-rule indicators? Do they understand the teachings of Milton Friedman and Frederich Hayek — that markets, which contain more information than economic models, are the best judges of economic “risk management”?
He seems to be unaware of that Milton Friedman now supports inflation targeting (see here too). He might also want to read up on the modern versions of Hayek which also support the Fed’s movement towards inflation targeting and transparency (he could start here, here, and here, or read this). Setting aside the over-tightening debate he refers to, which is separate, he can believe whatever out of the mainstream position he wants, but he should be a little more careful about whom he cites as supporting it. And in answer to his question, I think the Fed bigwigs understand the teachings of Milton Friedman and Friedrich Hayek very, very, well, more so than a certain columnist at the NRO.