A "Comfortable" Level of Inflation

Richmond Fed President J. Alfred Broaddus says the central bank's greater credibility helps keep inflationary fears in check

For much of his nearly a quarter-century at the Federal Reserve, J. Alfred Broaddus had a reputation as a staunch inflation fighter. But when deflation began to threaten in wake of the 2001 recession, the Richmond Fed Bank president shifted his stance, arguing that the central bank needed to be as steadfast in resisting falling prices as it had been in containing rising ones.

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