Fed Commitment To Let Inflation Run Isn’t A Promise; It’s A Threat
According to a recent CNBC report, the Federal Reserve is set to make a major commitment to ramping up inflation.
According to the report, the Fed will pivot to average inflation targeting. With this strategy inflation above the central banks usual 2% target would be tolerated and even desired.
Practically speaking, the Federal Reserve would not raise interest rates until both its employment and inflation targets are met, meaning the central bank would likely keep interest…