The Federal Reserve seems to be quietly shifting its inflation goalposts above its 2% target that has anchored policy since 2012, even as it continues to emphasize its dual mandate of fostering maximum employment while containing inflation. With a new Fed chief to be named and set to take over in May, more openness to additional easing, the recent rate cuts aimed at supporting a softening labor market signal a growing willingness to tolerate a slightly higher inflation range in both the near and longer-term.
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