Fed Officials Call for Even More Price Inflation

San Francisco Fed President John Williams, crazed money printer.

I have been warning in the EPJ Daily Alert that as soon as price inflation, as measured by government statistics, climbed close to the Fed "target" price inflation rate, the Fed would increase the target and so here we are.

Two Federal Reserve officials said Monday the U.S. central bank should consider changes in its inflation-targeting framework to create more ammunition to respond to future downturns, reports The Wall Street Journal.

WSJ continues:

The Fed established a formal 2% inflation target six years ago, but in recent months some officials and other economists, including former Fed Chairman Ben Bernanke, have said the central bank should revisit the framework because interest rates now appear likely to remain much lower for longer. As a result, the Fed could find itself with less room to stimulate economic growth during the next downturn.

The idea of revisiting the Fed’s inflation target also has gained new attention because inflation has confounded officials’ forecasts for years by consistently falling below the 2% target. Such targets can be less effective if officials are chronically unable to hit them.

Among different ideas, some have urged the central bank to instead target a given level of prices, such as a 2% annual increase.

San Francisco Fed President John Williams argued in favor of a price-level target during a presentation at the Brookings Institution in Washington. Mr. Williams outlined support for such a tool last November.

A price-level target would allow the Fed to make up for periods of below-target inflation by allowing offsetting periods of above-average inflation...

Boston Fed President Eric Rosengren said in materials prepared for the conference he would prefer adopting an inflation range, rather than a precise target as the Fed currently does, because a range would give the Fed greater flexibility to allow for higher or lower inflation depending on how the economy is performing.

Bottom line: The bastards want to destroy the value of the US dollar at a more rapid pace.

-RW