Aug
30
Fed Adviser Adds to Argument That May Back Higher Interest Rates
By-
New Fed staff research builds on Powell’s Jackson Hole speech
- Price gauge back at 2% puts greater focus on unemployment
Low inflation has long confounded the Federal Reserve’s models, leading central bankers to keep interest rates lower than they otherwise would. Now, with a key measure of inflation at their 2 percent target, some of the Fed’s top economists are urging policy makers to put more focus on the risk that it could accelerate.
The price index for personal consumption expenditures excluding food and energy — a gauge Fed officials watch closely to get a sense of underlying price pressures — rose 2 percent in July from a year earlier, according to Commerce Department figures published Thursday. Until earlier this year it had fallen short of that level for almost six years…
Fed Adviser Adds to Argument That May Back Higher Interest Rates
