Two leading officials at the US Federal Reserve set out dramatically different views on monetary policy, highlighting the division among policymakers at the central bank.
In an interview with CNBC, Charles Evans, Chicago Fed president, said that he would “favour more accommodation” and argued that a short-term rise in inflation to 3 per cent was acceptable.
That contrasted with comments by Narayana Kocherlakota, president of the Minneapolis Fed, who said in a speech that the Fed could “lose control of inflation” if monetary policy is too loose, forcing it to jack up interest rates at a huge cost to future employment.
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