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St. Louis Fed economists Kliesen and Bokun discuss challenges the FOMC may face in implementing its new strategy, particularly targeting an average 2% inflation rate over time. The post is the second of a two-part series on the framework review.
Uncertainty over whether the Fed can deliver above-target inflation affects real rate expectations, which influence the dollar and commodity prices.
stlouisfed.orgKevin L. Kliesen, Kathryn BokunOct 22, 2020After 4,478 past macro events, US Dollar (Broad) moved a median +0.0% over 5 sessions (51% higher; middle half -0.4% to +0.5%), and +0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
