Major central banks, including the Federal Reserve, are potentially moving away from strict inflation targeting towards a more flexible approach. Analysts suggest this shift could be led by the Fed and involve transitioning to an inflation target based on a range, such as 2-3%. The ECB and BoE have already adopted ceiling systems, prompting discussions on whether the Fed will follow suit. Critics point to the Fed's credibility challenges amidst dovish policies and ongoing government spending.
A turning point in central banking, says @elerianm “…will be a slow progression, led by the Fed. Central banks will first push out expectations on the timing of the journey to 2% & then…transition to an inflation target based on a range, say 2-3%.” https://t.co/w334JJT3ac
Apparently they are now targeting global temperature inflation. https://t.co/BJQnZZ2LBM
Maybe because Fed/Powell are (slowly) losing credibility with all the dovish "pivoting" despite asset inflation & still-too-high consumer inflation? Also, turns out the Fed's B/S increase was not temporary. Plus, Fed keeps enabling wild U.S. govt. spending https://t.co/E9w3RJH4Fj
Changing the Fed's Target - FAIT non-accompli? https://t.co/oPxdnpsMbM
"It would not surprise me if future economic history books were to look back at the last week in central banking as marking a move away from strict inflation targeting by the world's most influential central banks." -@elerianm https://t.co/L5vbTCBs6p
Posted earlier today: Are we witnessing a turning point in how major central banks, led by the Federal Reserve, implement their inflation-targeting regimes? Some thoughts via the @FT: https://t.co/FiXWESsZ0O #economy #markets #centralbanks #econtwitter #federalreserve
Are we witnessing a turning point in the way major central banks, led by the Federal Reserve, implement their inflation-targeting regimes? Some thoughts via the Financial Times: https://t.co/FiXWESsZ0O #economy #centralbanks #inflation @FT #EconTwitter https://t.co/3dTcI0hyFD
"It would not surprise me if future economic history books were to look back at the last week in central banking as marking a move away from strict inflation targeting" - @elerianm's latest column for the FT https://t.co/Um7DEq7QFA
A turning point in central banking https://t.co/FcWT7CCf8q
****Forward Guidance: The ECB and BoE are switching to ceiling systems. Will the Fed?*** @bankpolicy | Good question @GeorgeSelgin @JeffCoxCNBCcom