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Raising the Inflation Target Would Be a Risky Challenge for the Federal Reserve

Innovation is needed but large central banks will be slow to revise their price goals
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How High Does the Fed Want Inflation to Go?

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Could a central bank maintain public faith if it announces a goal, misses it for more than four years, then say it wants to change it?

San Francisco Federal Reserve Bank President John Williams has asked his colleagues to start thinking about ways to push away from the zero boundary on interest rates. One strategy: Raise the Fed's inflation target from 2 percent currently, to, say 3 percent.