Economics
The Fed Can Blame Amazon for Keeping Inflation Too Low
- Since 1995, 2 percent was achieved just 26 percent of the time
- Inflation target should be closer to 1.5 percent, Sinai says
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Has the Federal Reserve’s 2 percent inflation goal become, for all intents and purposes, unattainable?
That may not be as far-fetched as it sounds. Eliminate food and fuel, and the price index tied to consumer spending has met or exceeded such a target just 26 percent of the time in the past two decades. During that span, the world’s largest economy has experienced booms in technology and housing, indicating periods of strong growth haven’t stoked sustained cost pressures.