You are the news now

THE NEWS COMMENTER

VOTE  (0)  (0)

Fed policymakers do their own math on 'average' inflation

Added 08-29-20 12:04:02am EST - “A day after rolling out a new strategy for U.S. monetary policy, Federal Reserve officials on Friday diverged over what it might mean in practice, saying there is no exact formula for the average inflation rate they plan to target.…” - News.yahoo.com

CLICK TO SHARE

Posted By TheNewsCommenter: From News.yahoo.com: “Fed policymakers do their own math on 'average' inflation”. Below is an excerpt from the article.

NEW YORK (Reuters) - A day after rolling out a new strategy for U.S. monetary policy, Federal Reserve officials on Friday diverged over what it might mean in practice, saying there is no exact formula for the average inflation rate they plan to target.

While the aim of the new strategy is to allow higher inflation and, as a side-effect, additional job growth over time, Fed policymakers differed over just how much more inflation they will tolerate or what metrics they will be looking at - a complication for investors or households setting expectations about the future.

Dallas Fed President Robert Kaplan said he would be comfortable with inflation running a "little bit" above the Fed's 2% inflation target if the economy were to once again be running near full employment.

"And for me, a little bit means a little bit," or about 2.25%, Kaplan said during an interview with Bloomberg TV. "I still think price stability is the overriding goal and this framework doesn't change that."

St. Louis Fed President James Bullard, who along with Kaplan and their 15 policymaker colleagues will carry out the Fed's new strategy, had a different answer.

Read more...

If you don't see any comments yet, congrats! You get first comment. Be nice and have fun.

CLICK TO SHARE

BACK TO THE HOME-PAGE