Federal Reserve Bank of Chicago - Annual Report 05

Federal Reserve policy has attained one of the benefits often attributed to formal inflation guidelines: well-anchored inflationary expectations, Chicago Fed President Michael Moskow said in an essay in the bank's 2005 annual report.

"At the present time, inflationary expectations are well anchored," Moskow said in the report's main article.

The Fed knows that even without rigid rules its approach to policy must be aimed at keeping inflation expectations anchored at a low level, Moskow said.

"Centr

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