Above-target inflation ‘essential’ for dual mandate – Chicago Fed’s Evans
Evans is second senior Fed official to back new inflation-targeting approach recently
Federal Reserve Bank of Chicago president Charles Evans backs an inflation-targeting approach that would commit to periods of higher inflation to tackle the effective lower bound problem.
Fed policy-makers “must recognise” that higher levels of inflation may be required to counter a downward bias in inflation, he says.
In a summary of a speech published by the Chicago Fed, Evans says policy-makers must convey to the public that periods of higher inflation are “essential” to achieve the Fed’s
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