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The Fed has estimated the equilibrium real interest rate to be 1%, recent CPI inflation has averaged around 6.5%, the real GDP is forecast to
The Fed has estimated the equilibrium real interest rate to be 1%, recent CPI inflation has averaged around 6.5%, the real GDP is forecast to be $24.9 trillion for the year, while potential GDP is estimated at $25.6 trillion, and the Feds inflation target 1.5%. What is the interest-rate target under the Taylor rule?
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