Earlier this month, the chief of the Minneapolis Fed gave an extraordinary speech http://bit.ly/1qUTucn in which he called for higher inflation.
That’s right — you and me, paying more for goods and services. Why would a central banker want something like that?
NEW YORK/SAN FRANCISCO (Reuters) – There is a distinct chance U.S. Federal Reserve officials will rewrite their strategy for normalizing monetary policy this week given signs that a roller-coaster debate over a new tool for controlling interest rates is nearing its resolution.
Investors worldwide are watching the U.S. central bank’s policy meeting that ends on Wednesday for hints on when it will start raising borrowing costs. But perhaps as importantly, officials may finally update a 2011 blueprint for a gradual tightening of the Fed’s ultra-loose policy and shrinking its swollen asset portfolio.