The Federal Open Market Committee (FOMC) raised short-term interest rates one quarter of a point to a new range of 0.75% to 1% at the March meeting. The statement, however, was less hawkish than many expected, with the FOMC underscoring the symmetry in its inflation goal. That means that committee members are willing to tolerate some overshooting in inflation to counter the below-target inflation we experienced in recent years and allow for more catch-up in the overall economy.
The next big debate will be how much overshooting the committee will actually tolerate. This is unchartered waters