Mester backs review of Fed’s inflation targeting framework

Loretta Mester
Loretta Mester, president of the Federal Reserve Bank of Cleveland

The president of the Federal Reserve Bank of Cleveland has backed calls for the US central bank to review its current 2% inflation target.

“Researchers have suggested several alternative frameworks,” Loretta Mester said at a conference in Paris on May 14.

These included “targeting an inflation rate higher than 2%, moving to an inflation-targeting range instead of a point goal, or targeting a path for the price level or for nominal GDP rather than for inflation”.

Mester warned, however, that t

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