STAFF NEWS & ANALYSIS
Federal Reserve Interest Rates Are Nonsense
By Daily Bell Staff – February 10, 2017
Fed’s Evans says inflation has to hit 2% for central bank to maintain credibility. Chicago Fed President Charles Evans has forecast two interest rate hikes this year but said he could be comfortable with a third. – Marketwatch
This article goes on about why the Federal Reserve has to raise price inflation in order to remain credible. Its point is that in the 1970s, inflation had to brought down but that in the 2000s it has to be raised.
Ideally the Fed would like to raise inflation to about two percent before working to bring it back down near zero.
The gentleman in question doesn’t exactly explain why inflation needs to be brought up before it can be brought back down, but he is certainly forceful about it.