Two FOMC members back overshooting target
Brainard and Harker suggest Fed should leave rates low until inflation rises above 2% target
Two senior Federal Reserve officials say the central bank should keep monetary policy accommodative until inflation has averaged 2% over time.
Lael Brainard, a member of the board of governors, said the Fed should be providing “sufficient accommodation” so that inflation averages 2% inflation over time. Brainard said on July 16 that research shows modestly overshooting the target could help offset periods where inflation was below target.
Patrick Harker, president of the Philadelphia Fed, said
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