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Is US Fed too drastic in bid to cap inflation at 2 per cent?
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The inflation target is an important issue, one that scholars and Fed watchers are quietly discussing because it could become crucial soon.
PHOTO: REUTERS
Jeff Sommer
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There’s rarely a convenient time for the United States Federal Reserve to openly debate whether its 2 per cent inflation target makes sense. This isn’t that time, but the Fed had better get ready.
More urgent matters preoccupy the central bank right now. It is staunching a crisis in the banking system while tightening financial conditions to squelch inflation.
