Fed Wants to Avoid Japan-Like Inflation Scenario, Kroszner Says

The Federal Reserve is “puzzled” by U.S. inflation and wants to avoid ending up like Japan, according to Randall Kroszner, professor of economics at Chicago Booth School of Business and a former Fed governor.

Policy makers are “very concerned about inflation not moving up” and want to “buy some insurance” about the potential for downside economic and price growth risk, he said in an interview on Bloomberg Television with Francine Lacqua and Tom Keene.