Bernanke Sees Powell's Fed Studying New Inflation-Target Regimes

Central bank has mostly missed inflation target for five years
Low interest rates pose risk of hitting zero in next recession

UBS Asset Management Head of Pan Asia Fixed Income Ashley Perrott weighs in on Fed policy and the markets.(Source: Bloomberg)

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By Craig Torres

January 8, 2018 at 9:21 PM UTC

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Former Federal Reserve Chairman Ben Bernanke predicted that the central bank’s new leadership will study alternate regimes for monetary policy over the next year to 18 months.

“There will be some pretty serious discussions” on policy frameworks at the Fed under the chairmanship of Jerome Powell, Bernanke said Monday. He said Powell is likely to assign a subcommittee of officials to study the subject. “I imagine this will come up for serious debate in the next year to 18 months.”