Powell says making up for lost inflation is ‘great idea’
Financial Times/Brendan Greeley/9-6-2019
“When a central bank undershoots its inflation target, Mr Powell explained, it can promise to the public that it will overshoot in the future. As it makes up for lost inflation, the bank would also be making up for lost growth. ‘If the public understands and acts up on that, we limit the damage from the recession,’ he said. ‘It’s a great idea.’”
USAGOLD note: The article goes to say that Fed officials, including we presume Mr. Powell himself, will “speak in English to people.” Not a bad idea. . . .