If Fed Can’t Fine-Tune, It Should Focus on Inflation
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Submitted by CARPE DIEM
Notice in the chart above that over the last 7 years the Federal Reserve has moved the target Fed Funds rate (blue line) from 6% in early 2001 to 1% for about 12 months from mid-2003 to mid-2004, and then back up 5.25% from mid-2006 to mid-2007, and now it’s back down to 4.5%.
