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Does That Word Mean What You Think It Means?
In an earlier piece I documented the Federal Reserve’s failure to consistently hit their 2 percent inflation target and suggest a corrective policy change. Here I explore some of the confusion around the current framework and consider how the Fed can be pursuing a symmetric inflation target yet not see symmetric policy outcomes. The Federal Reserve’s much anticipated conference on strategy, tools, and communication will soon be upon us. Will the conference yield any groundbreaking changes in the Fed’s policy approach? Probably not. Federal Reserve Chair Jerome Powell set a low barfor the outcomes of this ... (full story)