The Traderszone Network

Published in TZ Latest News 27 July, 2014 by The TZ Newswire Staff

Is the Fed finally beginning to see the problems with IT?

For years I’ve been arguing that the public doesn’t understand inflation targeting, and that the Fed needs a target that the public does understand, such as NGDP targeting.  In 2010 when core inflation was running below 1%, Bernanke said the Fed would seek to raise the rate of inflation closer to 2%. Talk radio told its listeners that the Fed wanted to raise their cost of living when average Americans were already struggling, and of course there was an uproar.

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