Senior Fed officials call for overshooting inflation target
Kashkari says Fed acted too early in tightening while Brainard says policy must meet ‘new normal’
The Federal Reserve should allow inflation to overshoot its target, Minneapolis Fed president Neel Kashkari and Fed governor Lael Brainard said in speeches on May 16.
“In my view, we have not implemented our current framework as it was designed to be implemented,” Kashkari said. “For our current framework to be effective and credible, we must walk the walk and actually allow inflation to climb modestly above 2% in order to demonstrate that we are serious about symmetry.”
He said monetary
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