26 August 2022
Fed Chair Jerome Powell said the bank “is strongly resolved to bring inflation down to 2%,
and we will keep at it until the job is done.”
Inflation may improve at times. The point is we aren’t going back to the halcyon days of 1% and 2% inflation for years
John Mauldin 23 September 2022
To bring price increases down to 2%, we may need to tolerate unemployment of 6.5% for two years.
Jason Furman WSJ 7 September 2022
Fed appear solely focused on getting core inflation back down to 2%
without acknowledging how much economic pain it will cause.
John Authers Bloomberg 28 september 2022
The 2 per cent inflation target came up repeatedly throughout the conference,
with economists suggesting that it may need to be adapted to fit a more fractured global economy.
Fed in 2020 announced it would target inflation at a 2 per cent average over time, in order to make up for past periods of undershooting the target.
Many economists advocated for a 3 per cent inflation target.
FT 28 August 2022
Fed’s Bullard Says Credibility of Inflation-Targeting Is at Risk
Price pressures threaten the credibility of the central bank’s inflation target.
Federal Reserve Bank of St. Louis President James Bullard