Does the Fed’s own target suggest it is not doing enough to lower inflation?

Published March 6, 2024 5:00am ET



The Federal Reserve’s definition of its inflation target suggests it should aim to drive the inflation rate below 2% for the next several years.

Central bank officials, though, have avoided entertaining any such possibility. Given the disconnect, experts suggest, the Fed should clarify its target to forestall any confusion by explaining it won’t aim for very low inflation in the years to come. 

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