New strategy to hit inflation target reduces risk of deflation spirals.
The article discusses how the Federal Reserve's inflation target has not been met since 2001 due to a policy that doesn't account for the risk of hitting the zero-lower-bound. By adjusting the policy to respond less aggressively to high inflation, the risk of deflation can be reduced without needing to overshoot the target. Simulations show that a small level of adjustment would have prevented the deflationary bias seen in the US.