Jackson Hole 2015 Weblogging: Comment of the Day: How Well-Structured Is Our Federal Reserve, Anyway?: "Forget about 2% vs. 4% as a target...:
...Fed speak (including the accidentally released longer-term staff forecasts)is clearly viewing 2% as a ceiling! So the Fed isn't even committed to the 2% as a centered target. At some point this influences behavior, and leads to the subpar macro performance (and just loads up more risks of a situation that would require further rounds of unconventional policy). I just can't understand it other than primitive "slippery slope" arguments having a disproportionate impact.