Bloomberg reports that sometime next year, the Federal Reserve will likely face an unusual confluence of economic circumstances. One of its mandates, full employment, will call for monetary policy to tighten relatively quickly. On the other hand, inflation, will suggest it should stay loose. How should the Fed weigh these competing goals? It may want to dust off an outdted doctrine from the 1990s, “opportunistic disinflation” and replace it with “opportunistic inflation.”
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