Making a statement via the Minneapolis Fed website and repeating the comment made previously
“Why do I see symmetry as important? Without symmetry, inflation might spend considerably more time below 2 percent than above 2 percent. Inflation persistently below the 2 percent target could create doubts in households and businesses about whether the FOMC is truly aiming for 2 percent inflation, or some lower number. This kind of unmooring of inflation expectations would reduce the effectiveness of monetary policy as a mitigant against adverse macroeconomic shocks.”
He would like the Fed to move to a 2 year benchmark for inflation rather than the using the “over the long run” which has no time frame for reaching the 2% objective.
