When The Fed Heads Stuck A Wet Finger In The Air: How The 2.00% Inflation Target Evolved Per The Meeting Transcripts, 1986-2013

A narrative analysis of the historical FOMC meeting transcripts indicates that FOMC participants generally expressed a preference for an inflation target of around 1½% from 2000 to around 2007. By the end of the Great Recession in 2009, however, the consensus had clearly shifted to 2%. This became the official target announced to the public […]