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
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