Fed’s Bullard believes a ‘five-year window’ for AIT is ‘realistic’
Too much precision can “get you into trouble”, says St Louis Fed chief
“A five-year window” is “realistic” for the length of time that inflation should average out to 2% under an average inflation targeting (AIT) monetary policy framework, says Federal Reserve Bank of St Louis president James Bullard.
“I do think a central bank can control inflation over that long of a time-period framework,” Bullard tells Central Banking in a wide-ranging interview. “So, I think a rough-and-ready way to look at inflation averaging 2% is just to take your favourite five-year
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