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The Fed Is a Lot Closer to Its Target Using This Inflation Measure

The trimmed mean measure mimics Olympic ice-skating scoring to arrive at its inflation readings

Inflation looks more stable — and a lot closer to the Federal Reserve's 2 percent target — according to a price gauge favored by some policy makers.

Developed by the Dallas Fed, the trimmed mean measure seeks to sort through noise caused by the monthly ups and downs of prices to arrive at a more accurate reading of underlying inflation, according to Jim Dolmas, senior research economist at the bank.