Fed’s Evans Would Be ‘Quite Pleased’ With 2.5% Core Inflation

The transcript discusses the importance of not being timid in achieving inflation above 2%. It emphasizes the need to overshoot this target to maintain credibility and achieve dual mandate objectives. The speaker suggests that reaching 2.5% inflation would indicate economic balance and accommodation. The Evans rule and forward guidance are mentioned as effective strategies, with a focus on keeping interest rates low until inflation confidently exceeds 2%. The discussion concludes with the importance of strong communication to meet objectives and avoid preemptive actions.

What does the speaker suggest about the current monetary policy stance?

What are the implications of the speaker's view on raising interest rates?