The head of the Federal Reserve Bank of Boston believes that the Fed should change its inflation target to 2%, expanding its range

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The unemployment rate in the United States will continue to decline in the short term, despite a slight slowdown in economic growth in the country, the head of the Federal Reserve Bank of Boston, Eric Rosengren, said. He pointed out that even with strong data on the labor market, inflation does not reach the target level of 2%, which the Federal Reserve System established in 2012. This figure was exceeded in June and July last year, reaching 2.9%. Then inflation began to weaken and fell in December to 1.9%. According to Rosengren, the Fed should abandon the target inflation rate of 2%, setting a wider range of it. He pointed out the naturalness of the fact that during periods of recession inflation may be below 2% and may increase to a level exceeding 2% during periods of rising economic growth.

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