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What the gap between CPI and PCE means for Fed overshooting

from The Wall Street Journal

One of the biggest debates right now over the outlook for inflation is whether the Federal Reserve would allow inflation to overshoot its target — that is, allow inflation to rise above 2 percent for some period of time. Chicago Fed President Charles Evans and San Francisco Fed President John Williams have argued perhaps it should. But when it comes to overshooting 2 percent, the Fed’s choice of target becomes really important. more

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