Benefits to inflation overshooting target – Chicago Fed president
Policy-makers “willing to accept” inflationary risk, says Evans
A current voting member of the Federal Open Market Committee has said he believes there are benefits to trying to "engineer" an inflation overshoot.
Speaking in Australia today (October 11), Federal Reserve Bank of Chicago president Charles Evans asked the audience: after many years of low inflation, "would overshooting 2% be a failure or a virtue?".
In his mind, overshooting the Fed's 2% inflation target would benefit the economy, as policy-makers would be "willing to accept" the higher
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