Fed's Evans: for any new policies to succeed, Fed must deliver on current 2% inflation goal
Speaking at the Central Bank Communications Conference hosted by the European Central Bank (ECB), the Chicago Fed President Charles Evans called for new policy approach to deal with future bouts of zero interest rates.
• Fed should think ahead about how to adjust framework.
• For any new policies to succeed, Fed must deliver on current 2% inflation goal.
• Price-level targeting may be a good way to go, but needs more study.