Fed’s Yellen says gradual hikes should continue, despite weak inflation

Reuters/Howard Schneider & Ann Saphir/09-26-17

The Federal Reserve needs to continue gradual rate hikes despite broad uncertainty about the path of inflation, Fed Chair Janet Yellen said on Tuesday in remarks that acknowledged the central bank’s struggles to forecast one of its key policy objectives.

It is possible, Yellen said, that the Fed may have “misspecified” its models for inflation, and “misjudged” key facts like the underlying strength of the labor market and whether inflation expectations are as stable as they seem.

Share
This entry was posted in Central Banks, Fed, Monetary Policy. Bookmark the permalink.

Comments are closed.