{"id":214360,"date":"2024-03-18T02:30:22","date_gmt":"2024-03-18T02:30:22","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/03\/18\/how-close-to-target-econbrowser\/"},"modified":"2025-06-25T17:20:28","modified_gmt":"2025-06-25T17:20:28","slug":"how-close-to-target-econbrowser","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/03\/18\/how-close-to-target-econbrowser\/","title":{"rendered":"How Close to Target? | Econbrowser"},"content":{"rendered":"

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Technically, the Fed targets the PCE deflator, but many use the core PCE as a proxy. I show what the data indicate, including the Cleveland Fed\u2019s nowcast as of 3\/14 for February.<\/p>\n

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Figure 1:<\/strong> Core PCE deflator year-on-year inflation (blue), and instantaneous per Eeckhout (2023), at annual rates. February 2024 observation is Cleveland Fed nowcast as of 3\/15. Red dashed line at 2%. Source: BEA, Cleveland Fed<\/a> (3\/15), NBER and author\u2019s calculations.<\/em><\/p>\n

Taking the instantaneous measure, we\u2019re a percentage point and a half above target, while the q\/q measure is 1.2 ppts.<\/p>\n<\/p><\/div>\n

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