Published By:Business Insider
One simple action the Fed refuses to take could make its policies a lot more powerful
There is an easy step officials at the Federal Reserve could take to improve their ability to fight the next recession, but policymakers are deeply reluctant to go there: raising the central bank’s 2% inflation target.
Several prominent economists, including former President Barack Obama’s top economic advisor Jason Furman and Nobel laureate and Columbia University professor Joseph Stiglitz, have signed a letter proposing Fed officials do just that.