1/13, 9:31 PM (Source: TeleTrader)
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Fed's Clarida praises setting average inflation target

United States Federal Reserve Vice Chair Richard Clarida commended the Fed's decision to set an average inflation target at a seminar on Wednesday.

Clarida called the 2% inflation target an "aspiration" and not an "ex-post commitment" and went on to say that the Fed's models show that by overshooting inflation, the 2% target will be reached on average.

The central banker also stated that the Fed wants to return to its longer-run goal of 2%, but not below as soon as the economic situation normalizes.

Breaking the News / VP