Risk that US public lowers inflation expectations, Chicago Fed president warns
Failures by the Fed to hit its 2% target may make future task harder, Evans says
There is a risk the American public's expectations of future inflation will be lowered by their experiences of recent monetary policy, the president of the Federal Reserve of Chicago has said.
Such a downward revision would make it even harder for the Fed to reach its medium-term target of 2% inflation, said Charles Evans, in a speech in Madison, Wisconsin, on January 7.
"Undershooting our 2% inflation target for as long as we have", Evans said, invites the risk of the public expecting
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