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Daly On Inflation Target

FED
  • Daly on the 2% inflation target. 3% is a point where mentally most people won’t ignore inflation, whereas a 2% target gives enough of a buffer from deflation but with people not being too attentive to inflation, which is desirable.
  • Completely unwilling to entertain going above 2% at this point. We’ve set a goal and its not credible to move the goalposts while you’re midstream.

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