Patrick Horan and David Beckworth on *The Fate of FAIT* and the Future of the Fed’s Monetary Framework
Macro Musings with David Beckworth
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The Fed's Goal Is to Undershoot From Below, Not From Above
Prior to 2020, the Fed's goal was to try to hit 2% inflation each year. But they didn't take into account misses to that target. So then the idea was, OK, we'll make up for undershoots to bring the average back to 2%. And a lot of people were confused, including a lot of prominent economists. I too was thinking this would be more symmetric.
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