2 percent?

 



The Federal Reserve’s policymakers ought to ask why, with inflation stuck at 3%, investors have so confidently priced in at least two further interest-rate cuts
.
Core PCE inflation (the central bank’s preferred measure) fell to 3.1% at the end of 2023. Two years later, it’s still roughly 3%.


Policymakers could leave their 2% target in place formally, but be all right with never quite getting there. And then some years down the line, they could adopt a higher target.




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