Vice Chairman Richard Clarida says central bank will study letting inflation rise above 2% during booms
Federal Reserve vice chairman Richard Clarida said Tuesday that the central bank’s review of its monetary policy will look at new ways to deal with low inflation as well as novel approaches to stimulate a weak economy and to communicate with the public.
The Fed kicked off its review this year after officials realized interest rates are likely to remain lower than in the past, even in periods of economic growth. Since lower rates could limit the central bank’s ability to boost a slumping economy, officials are looking for new...
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