Federal Reserve officials would be content to let inflation briefly run above their 2 percent target as the economy continues to recover, according to minutes from the central bank's most recent meeting. Following the May 1-2 session, the policymaking Federal Open Market Committee said it wasn't raising rates yet but added the word "symmetric" to describe its inflation goal. Market participants since have puzzled over what the change in language might imply.
Fed indicates it will let inflation run above 2 percent goal for 'temporary period'
The Federal Reserve minutes from its May meeting said "a temporary period of inflation modestly above 2 percent would be consistent with the Committee's symmetric inflation objective." The central bank also pointed to an interest rate hike at the June meeting. "It would likely soon be appropriate for the Committee to take another step in removing policy accommodation," the minutes said.
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