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Published on Thursday, March 29, 2018 | Updated on Monday, April 2, 2018

U.S. | Whites of Inflation’s Eyes in Powell’s Crosshairs

Factors that pre-date the crisis such as globalization, innovation, demographics and productivity explain bulk of persistent undershooting of the inflation target. Although there is a more tenuous relationship between labor market slack and wages, some further tightening could help lift prices above the 2% target in the medium-run.