Harker answering questions in London
- Fed is still accommodative
- There is an active debate on Fed about whether they are measure inflation correctly and it's possible that we are entering a low-inflation world
- May revisit rate view if inflation moves away from goal
- Says he hasn't factored in anything related to fiscal policy
The comment on a low-inflation world is an interesting one. The Fed is at least beginning to think about abandoning the old model that has incorrectly predicted inflation forever.
