Economics
Fed’s Kaplan Says Inflation Can Run ‘Moderately’ Above 2% Goal
- Prices can overshoot Fed’s target following subdued periods
- More PPP, state and local fiscal relief likely needed
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The Federal Reserve could allow inflation to accelerate above its 2% goal if has underperformed it in the past, said Dallas Fed President Robert Kaplan.
“I would be willing to see inflation run moderately above 2% in the aftermath of periods where we’ve been running persistently below,” Kaplan said Friday in a virtual event with the Dallas Friday Group, a business organization.