Fed Studying a Possible Shift in Inflation Strategy, Clarida Says
- Vice chair says it’s ‘one of the most important’ issues
- Fed also reviewing communication, monetary policy tools
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Federal Reserve Vice Chairman Richard Clarida suggested that the central bank is seriously considering the possibility of altering its strategy for achieving price stability.
Under the new approaches that the Fed is examining, the central bank would commit to make up for past deviations from its 2% inflation target, rather than treating misses of the goal as bygones, as it does now.