Yellen told inflation target needs revising

UK inflation

The Federal Reserve should appoint a “blue ribbon commission” to decide whether it is time to revise the central bank’s inflation target, a group of 22 economists suggest in a letter to Janet Yellen, Fed chair.

Sent on June 8, the letter – signed by individuals including Joseph Stiglitz, David Blanchflower and Narayana Kocherlakota – acknowledged that in the past the Fed’s 2% inflation target gave “ample leverage” for the central bank to raise interest rates.

However, the equilibrium interest