I don’t know how he can say this stuff without blushing.
- Fed must keep up stimulus, and possibly add more, even if inflation rises above 2% target
- Fed should keep up stimulus even as employment grows and asset prices rise unusually high
- Low inflation shows there’s a lot of room for Fed to provide much-needed stimulus
- Current outlook for gradual decline in unemployment rate should trigger more stimulus
That’s as dovish as it gets.