Janet Yellen backs form of price-level targeting for Fed

Janet Yellen

Janet Yellen backed a form of price-level targeting for the Federal Reserve during remarks on November 26.

The former Federal Reserve chair warned that failing to adapt the Fed’s framework to cope with more frequent periods at the zero lower bound (ZLB) could cause long-term rates to spiral further downwards, adding fresh complications for policy-making.

If the Fed does not correct for below-target inflation, market participants will come to expect average inflation of less than 2%, Yellen

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: