According to this article, the US needs much more monetary accommodation in the face og high unemployment and inflation that's too low. The regional bank chief of Chicago, Charles Evans also advocated targeting a path for the price level as a way to stop the inflation rate from falling.
Central bankers, seeking ways to boost flagging growth after lowering interest rates almost to zero and buying $1.7 trillion of securities, are weighing strategies for raising inflation expectations as well as expanding the balance sheet by purchasing Treasuries, according to minutes of the Fed’s Sept. 21 meeting released this week.
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