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Rate Cuts May Not End Fed's Quantitative Tightening | Former Atlanta Fed President Dennis Lockhart

Forward Guidance

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The Importance of Setting an Inflation Target

When you joined the Federal Reserve, it was not an inflation central targeting bank. And so at that time, what did you target? If you targeted low inflation, the dual mandate, what did that mean? It wasn't a specific number? I hemmed and hod and said, well, somewhere between one and a half and 2%. The choice of 2% was far enough away from the threshold of deflation.

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