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Fed should target an inflation range – Rosengren

The Fed should shore up its ability to fight economic downturns by committing to let inflation run above 2% “in good times,” according to Boston Fed President Eric Rosengren.

“My own preference would be an inflation range of 1.5%-2.5%” because hitting the current target will only get harder with rates as low as they are, he said at Davidson College in North Carolina.

“Even though we’re only missing by a little bit it actually does matter if you miss by a little bit on a regular basis.”

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