Sentences with phrase «higher inflation target»

A higher inflation target would entail easier policy than is now envisioned.

Additionally, Fed Governor John C. Williams of San Francisco recently published a paper suggesting a shifting focus from monetary policy to fiscal policy and an emphasis on economic growth and a higher inflation target.

If you really thought what a dovish Fed chair would do, they would actually be trying to push for a higher inflation target.

All of the factors pointing towards a higher inflation target have gained force in recent years.

First, the most direct attack on low r - star would be for central banks to pursue a somewhat higher inflation target.

«So too the Japanese yen, given the active efforts to weaken it through rhetoric, a higher inflation target, promises of future monetary easing, and a government adamant that it can bring inflation back.»

Theoretically, a higher inflation target would require the central bank to run a higher policy rate.

Perhaps it's time for higher inflation targets (reversing the Volcker disinflation paradigm) and fiscal policy to take up the challenge.

Not exact matches

Even if Canada doesn't start dropping payloads of cash itself — something Cooper says he does not foresee in the next three years, at least — the ripple effect of a central bank explicitly targeting higher inflation and adopting formerly verboten measures to get it would be felt on these shores in the form of increased global volatility.

NEW YORK, May 2 - U.S. stocks edged higher while the dollar and Treasury yields fell on Wednesday after the Federal Reserve held interest rates steady and said inflation had «moved close» to its target.

Expectations are high the Bank of Japan may boost its government bond purchases at its April 3 - 4 policy review, the first under new Governor Haruhiko Kuroda, who has vowed to do whatever it takes to hit the BOJ's new 2 percent inflation target.

NEW YORK, May 2 (Reuters)- U.S. stocks edged higher while the dollar and Treasury yields fell on Wednesday after the Federal Reserve held interest rates steady and said inflation had «moved close» to its target.

The U.S. Federal Reserve's gauge of inflation remains stubbornly below its 2 percent target, but U.S. 10 - year Treasury yields spiked to near four - year highs in January as a bond sell - off gathered steam.

This was most likely not high enough to support the Fed's stated inflation target of 2 % year - over-year.

For instance, Morningstar found that passively managed target - date funds tend to have fewer holdings in high - yield bonds and Treasury inflation - protected securities than their actively managed counterparts.

«This progress reinforces governing council's view that higher interest rates will be warranted over time, although some monetary policy accommodation will still be needed to keep inflation on target.»

If central banks had targeted higher average inflation, on the other hand, interest rates would also have been higher, allowing central banks more space to slash rates to keep the economy functioning.

Finally, in a nominal GDP targeting regime, a decline in r - star caused by slower trend growth automatically leads to a higher rate of trend inflation, providing a larger buffer to respond to economic downturns.

But if there's a grain of truth in the nowcasts, there's a reasonable possibility that inflation will remain at the Fed's target or move higher in the months ahead.

Sometimes people ask whether a higher target for inflation might not be better, particularly when inflation is looking like it will rise and the Bank is running a setting of monetary policy designed to resist that.

«Not only will they tolerate higher inflation, not only will they wish for higher inflation, but they actually may target higher inflation,» El - Erian said during a «Squawk Box» interview.

If inflation is likely to be too high for too long, the Reserve Bank Board would typically increase the cash rate to bring inflation back to the target.

Beckworth seems to have two concerns: 1) in order to work, cash transfers or any equivalent, have to be «permanent» and 2) unless the ECB allows inflation to go above target, any effect will be offset by higher interest rates.

The implementation of monetary policy in Australia is market - based, with a high degree of transparency in both the operational objective (expressed in terms of the cash rate target) and the ultimate objective (expressed as an inflation target).

Precious and Industrial Metals Inflation concerns, geopolitical tensions and interest - rate levels, especially real yields, contributed to a 1.7 % rise in the spot price of gold (to US$ 1,325 per troy ounce), as did swings in the US dollar.1 Gold prices traded within the US$ 1,305 — 1,360 range throughout the period, reached 18 - month highs in March and capped their third straight quarterly gain, a feat not seen since 2011.1 Haven demand was a key support as exchange - traded gold holdings of 2,269 metric tons (mt) neared a five - year high.1 The Fed is widely expected to boost borrowing costs, and investors have been carefully watching the central bank's statements to see whether it targets more rate increases in 2018 than previously projected.

On the whole, he added, without the Fed policies, the jobless rate would be higher than the current 5 % and the inflation rate would be even further below the Fed's 2 % target.

This means that if a two percent inflation target reflected a proper balance when it first came into vogue decades ago, a higher target is probably appropriate today.

The policy implication is that had the Fed targeted higher inflation in recent years, a lower real interest rate could have hastened the recovery.

On the short - side of the yield curve, the consensus seems to interpret the Federal Open Market Committee's recent use of the word «gradual» as an indication that it will allow inflation to run higher than 2 % in order to make up for the last 20 years of below - target growth.

So it has to manage inflation expectations verbally, while also backing away from its preferred inflation targets and accepting higher ones instead.

«Not only will they tolerate higher inflation, not only will they wish for higher inflation, but they actually may target higher inflation,» El - Erian said.

All of the argument about appropriate inflation targeting in recent years has focused not on whether 2 percent is too high but on whether it is too low a target.

stocks on Wednesday close lower, after initially edging slightly higher, as the Federal Reserve acknowledged rising prices and said it now expects inflation to «run near» its 2 % target «over the medium term,» in its most recent policy statement.

In the United Kingdom, headline inflation is close to 3 percent on an annual basis, higher than the central bank's projected target of 2 to 2.5 percent; and in the United States, consumer inflation remained above the central bank's 2 - percent target until May of this year before slipping modestly.

It also said inflation is moving higher, close to its target.

As Chart 2 shows, policy rates in Canada have on average been only 0.25 % higher than the US (using quarterly observations) since the introduction of inflation targeting from the Bank of Canada in 1992.

He makes the now familiar point that if negative real rates are sometimes desirable on counter cyclical grounds there is a strong argument for an inflation target high enough that the ZLB does not bind or binds only very infrequently.

With producer prices pushing higher, overall inflation is expected to steadily move toward the Fed's 2 % target.

(iii) If a two percent inflation target was appropriate when the neutral real rate was thought to be two percent and stable, surely a higher target is appropriate when the neutral real rate is zero and unstable.

Inflation, which had been stubbornly high, fell back into the bank's target range of two per cent.

While not exactly hitting the Federal Reserve's revered 2.0 % annual inflation target, it was apparently close enough to create more jitters in the bond market, with the yield on the U.S. Treasury's benchmark 10 - year note immediately climbing seven basis points to 2.91 %, its highest level in more than four years.

This is contributing to a continuation of inflation rates that are below target in most advanced economies, although in headline terms they are mostly higher than a year ago.

Inflation is running high and above target in a number of emerging markets.

Easy money policies abroad push the dollar higher, hurting U.S. exporters and making it harder for the Fed to get inflation back up to its 2 percent target.

Longer - run inflation expectations are lower than they were a year ago, but seem to have stabilised more recently, and they remain higher than the mid-point of the Bank's target.

The pull back in prices since January relates to higher interest rates as inflation is now running ahead of the 2 % target set by the Fed.

With inflation at multi-year highs and way beyond the central bank's target of 2 percent, and wage growth not rising quickly enough, monetary - policy members were expected to look to balance growth and inflation when they met in November.

Inflation has continued to rise above the government's target and is now at its highest level for nine months.

But he insisted the economy was on course to meet its inflation target of two per cent, house prices were stabilising, employment was high and interest rates were also stable.

It is a multi-asset fund but it is largely unconstrained: it targets US and international income - producing securities including common stock, high - yield and investment grade debt, preferred shares and convertibles, and a variety of hedges including gold, precious metals, currency forward contracts, and inflation - linked vehicles.