"Let's start with what the Fed got right. Internal documents from 2009 and 2010 (now public) reveal that policy makers were largely aiming to return the unemployment rate to 5 percent by the end of 2015 (from nearly 10 percent at the end of 2010). "
" The Fed’s staff expected that this would be associated with inflation rising slowly from near 1 percent to only about 1.5 percent by the end of 2015 "
"..,,. In terms of unemployment and inflation,
the Fed basically got the recovery it wanted: "
Why did the fed prefer a snailer ?
And why is this the settling in level ?
" The unemployment rate has been close to 5 percent for the past year, and the Fed’s preferred measure of inflationary pressures is at 1.7 percent."