Fed Officials See Benefits in Letting Inflation Run Above Target
Bloomberg News on Jan 19, 2018
Former Fed Governor Laurence Meyer reckons that officials might tolerate inflation rising to around 2.5 percent.
Dudley’s stated willingness to accept an overshoot “has a lot of force” given his senior position in the Fed hierarchy, according to Meyer, head of Monetary Policy Analytics, an independent research advisory service based in Washington.
“I call it a poor man’s price level targeting,” he said.