Fed considers letting inflation run above target - report

Author: Justin Low | Category: Central Banks

The Fed is said to be considering introducing a new rule that would let inflation run above its 2% target

Fed FOMC
If true, this would be quite a significant shift in terms of policy by the Fed as they look to try and battle against price pressures that have consistently undershot their 2% target since it was introduced back in 2012.

This is being reported by the FT here (may be gated), citing interviews with current and former policymakers ahead of the conclusion of the Fed's year-long review of its monetary policy tools - due to conclude next year.

If you've been on the site over the past few weeks, this probably wouldn't catch you by surprise as Adam has been highlighting it many a time:


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