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Fed More Effective With Inflation, Funds Rate Goals

The Federal Reserve’s decision to spell out the optimal rate at which prices should increase in the U.S. and the possible trajectory of its benchmark interest rate will make policy more effective, a survey showed.

Almost seven of every 10 members polled by the National Association for Business Economics said the central bank’s plan to keep inflation rising at around 2 percent over the long term will improve the effectiveness of monetary policy. Six of 10 said releasing projections for changes in the so-called federal funds rate will also help.