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Divided Fed Considers Numerical Triggers For Rates Policy

Thursday, October 4, 2012 - 2:23 PM
From Reuters via Yahoo Finance
The U.S. Federal Reserve may adopt numerical thresholds for inflation and joblessness that would serve as guideposts for policy, according to minutes from a September meeting that revealed some reticence about the central bank's latest stimulus.
There was clear support for an approach favored by Chicago Federal Reserve Bank President Charles Evans, who has advocated allowing inflation to rise as high as 3 percent for as long as it takes to get the jobless rate below 7 percent.

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The approach advocated by Evans is especially worrisome. At least Chairman Bernanke has been against raising the Fed's inflation target. I hope he doesn't give in to the inflation doves.
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708