Economics
Fed Must Alter Habits of a Generation in Higher Inflation Quest
- Powell to hold post-FOMC meeting press conference on Wednesday
- Officials must learn new way of talking about inflation risks
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The Federal Reserve’s new push for higher inflation means crafting new tactics that convince Americans it won’t clamp down on rising prices.
For four decades, the Federal Reserve kept up its guard on inflation, beating it back even when it whispered a threat. Such vigilance won the battle but price pressures have since become too weak, depressing interest rates and making it harder for officials to fight recessions.