How is the Federal Reserve working to bring inflation back down? Research Director Sylvain Leduc discusses the Fed’s recent policy decision in our May 2022 FOMC Rewind Live video.
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Economic Letter
How much persistent versus transitory forces contribute to inflation influences the Federal Reserve’s ability to achieve its goal of 2% average inflation over time. If elevated inflation is driven mainly by persistent shocks, then a stronger and longer-lasting policy response is likely to be needed to bring inflation back down.
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