Fed’s Williams Demands Clarity in Inflation Target

President of the Federal Reserve Bank of New York, John Williams, has urged the US Federal Reserve to make it is target for inflation more clear, instead of stating that it would keep interest rates near 0% until inflation moderately exceeds 2%.

“Moderate isn’t a number, it’s a guard rail” Williams was quoted by Reuters as saying.

“It’s also about proportionality.”

“There’s flexibility, and there’s some discretion around that.”

“It is specific to the circumstances, and I would also say it is specific to where the economy is.”