Fed intends to restore the symmetry of its target inflation

In nearly ten years of expansion, US inflation has averaged 1.5% per year on the PCE index, vs a target of 2%. At cycle peak, we would expect to be above this level, to offset the underperformances during periods of recession. This is not the case, however. The central bank is increasingly concerned about the chronic low inflation rate. The monetary shift made by the Fed in recent months had its immediate origin in the sharp market correction at the end of 2018. But its fundamen...