The concept of symmetry, or the notion that an overshoot of the inflation target is no less desirable than an undershoot by the same margin, is mentioned frequently, and might conceivably be taken to mean that in effect the FOMC has raised the level of inflation it is prepared to tolerate. This comment comes from Steve Blitz of TS Lombard: The doves ruled-the-roost during this meeting with their myriad reasons given for why inflation really is not yet at 2%. By convincing themselves this is so, policy gave way to a symmetrical inflation target (symmetrical might be the most repeated word in these minutes) in order to prevent a policy overreaction that would keep the economy from reaching the FOMC’s “symmetric 2% objective” on a “sustained basis”. Sustained was probably the second most used word in these minutes.
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