This is a syndicated repost courtesy of The Daily Reckoning. To view original, click here. Reposted with permission.
We learned in yesterday’s Washington Post that the Federal Reserve ‘needs to learn to love inflation.’
Economics writer Matt O’Brien argues the Fed’s 2% inflation target is far too modest… that Janet Yellen lacks something in the way of vocational ambition.
This fellow believes Ms. Yellen should set her cap much higher – 4% inflation:
The higher inflation is, the higher interest rates have to be to control it – and the more room there is to cut them when the economy gets into trouble. So if a 2% target doesn’t get rates high enough to keep them away from zero, then maybe a 4% one will…
This post was published at Wall Street Examiner by Brian Maher ‘ June 17, 2017.