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Expected rate of inflation |
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Expected rate of inflation |
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The expected rate of inflation is often proxied by the actual rate over the last year. Adjusting policy in accord with the market's interest rate expectations--that is, operating to flatten the yield curve--would tend only to lock in the expected rate of inflation built into that curve. That's an increase of about $8 billion over last year's proposals, or just over 5 percent after accounting for the expected rate of inflation. |
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