Skip to main content

Will the Fed abandon inflation targeting?

In the long run we suspect the Fed will move away from rules-based inflation targeting and shift to a more discretionary regime that focuses on financial stability as well as price stability and full employment. In the short run, however, the Fed’s initial reaction will be to try to salvage inflation targeting by switching to a broader target range, probably along the lines of the 1.5% to 3.0% suggestion recently put forward by one Fed official.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access