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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.
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Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
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