Monday, March 13, 2006

FED Spells out Inflation Target

Well at least this is what they are thinking of using. No more trying to interpret what they are trying to say or speculating what the specific economic numbers that Greenspan may like are. This number has just become one of the more important ones on the economic calendar.

Yellen said she favors an inflation target of a 1.5% as measured by core personal consumptions expenditures price (PCE) index.

There could be a "comfort zone" extending between 1 and 2% around the target, Yellen said.

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