Fed’s Jefferson Rejects Arguments for Raising 2% Inflation Goal
- Says inflation could prove to be more persistent than expected
- ‘Under no illusion that it is going to be easy’ to cool prices
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Federal Reserve Governor Philip Jefferson defended the central bank’s 2% inflation target and said changing it could destabilize “well-anchored” inflation expectations.
His speech Monday to an economics class at Harvard University didn’t go into detail on the path ahead for monetary policy, though he said there is the possibility that service-price inflation could ease as wage pressures decelerate.