Is the Fed really that committed to getting inflation back to 2%?
Powell and his colleagues swear up and down that they are. And they insist they have no plans to increase their price target, despite calls from some economists to do so.
But Powell & Co. have also made clear that they’re willing to tolerate inflation above 2% for a while, especially if it’s heading down. They’re not out to crash the economy just to bring inflation back to their goal.
Has the Fed ever accomplished a soft landing?
Arguably once, in 1994-1995.
Bloomberg 27 February 2023
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