Fed Should Study Higher Inflation Target, Liberal Economists Say
- Stiglitz, Furman, Kocherlakota among those making the call
- Group wants Fed to set up a commission to study the issue
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A group of 22 progressive economists including Nobel Prize winner Joseph Stiglitz urged the Federal Reserve to appoint a blue-ribbon commission to consider raising its 2 percent inflation target.
In a letter to Chair Janet Yellen and the rest of the Fed board released on Friday, the economists argued that a higher objective would give the central bank more room to combat downturns in the economy without unduly hurting Americans’ living standards.