Symmetry Means “On Averageâ€: Welcoming A Modest Overshoot of 2%
We said some time ago that we would hear the word “symmetric†many, many times as the likelihood ofinflation overshooting the 2% objective increased and as policymakers began to project such an overshoot
explicitly. “Symmetric†is intended to convey how monetary policy would respond. But FOMC participants’
definitions of symmetry are evolving in important ways. First, there's the one that is frankly totally
uninformative, telling us what we already know: “The Committee would be concerned if inflation were running
persistently above or below [its] objective.†But the phrase “on average†is now frequently included when
there is reference to a sym
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