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Comparing the U.S. Federal Reserve, the views on inflation

A comparison of the Federal Reserve to the statements of the two-day meeting that ended Wednesday and its meeting Jan. 31-Feb. 1:

INFLATION:

Now: The Fed sees inflation as much closer to his goal: “the Inflation has increased in recent quarters, moving close to the (Fed’s) 2 percent longer-run objective ….”

Then: “Inflation has increased in recent quarters, but is still below the (Fed’s) 2 percent longer-run objective.”

FED MAY TOLERATE HIGHER INFLATION:

Now: The use of the word “symmetric” means that the Fed will allow inflation to move above its target, to compensate for the many years it has been under 2 percent. The Fed “will be carefully monitoring the actual and expected inflation developments with respect to the symmetrical inflation target.”

Then: “In the light of the current lack of inflation of 2 percent, the (Fed) will carefully monitor the actual and expected progress toward the inflation goal.”

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