To overshoot or not to overshoot: That is the question confronting the Federal Reserve as the unemployment rate sinks to levels previously associated with full employment.
The idea of overshooting — allowing the unemployment rate to fall below its long-run normal level and inflation to rise above its 2% target — seems to be gaining traction. Earlier this month, Fed Vice Chairman Stanley Fischer laid out reasons why a “modest overshoot” would be appropriate in the current circumstances.
http://www.marketwatch.com/story/fed-sharpshooters-cant-hit-2-inflation-target-much-less-4-2016-02-18