The Federal Reserve should consider replacing its inflation-targeting framework with one aimed at the price level, the San Francisco Fed president, John Williams, said on May 5.

Inflation targeting has served central banks well in the past, but is suffering growing strains due to the very low interest rate environment, Williams told an audience in New York. Price-level targeting copes better in such an environment, he said.

Rather than a fixed inflation target, price-level targeting would see