Comparing the US Federal Reserve's views on inflation

AP News
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Posted: Mar 15, 2017 4:07 PM

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

INFLATION:

Now: The Fed sees inflation as much closer to its target: "Inflation has increased in recent quarters, moving close to the (Fed's) 2 percent longer-run objective ...."

Then: "Inflation 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 the Fed will allow inflation to move above its target, to offset the many years it was stuck below 2 percent. The Fed "will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal."

Then: "In light of the current shortfall of inflation from 2 percent, the (Fed) will carefully monitor actual and expected progress toward its inflation goal."