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The El Paso

Why the Fed picked 2% as an inflation target

Why the Fed picked 2% as an inflation target
Photo: KVIA ABC-7 · view original

In mid-July, new Federal Reserve Chair Kevin Warsh testified before two congressional committees and pledged to restore annual inflation to the central bank’s stated target of 2%. Given that inflation, as measured by the personal consumption expenditures (PCE) index, has been above that mark for...

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