No appetite at Fed, ECB for changing inflation goal

European Central Bank President Christine Lagarde and Federal Reserve Chair Jerome Powell have both stated that there will be no change to their shared objective of achieving a 2% inflation target, despite the challenges posed by the global economy emerging from the pandemic.

reuters.com

Relevant topic timeline:

8/24/2023

'Treacherous' descent: Fed debates how far to push rate hikes

Federal Reserve Chair Jerome Powell aims to bring inflation back down to its 2 percent target while avoiding causing a recession, as he addresses the uncertain economic outlook at the annual conference in Jackson Hole, Wyoming.

8/24/2023

Inflation? This man holds the key

As Jerome Powell, the chair of the U.S Federal Reserve, prepares to speak at the Jackson Hole symposium, the big question is whether he will signal a major shift in how central banks deal with inflation, particularly regarding interest rates and inflation targets. Some economists are suggesting moving the inflation target range from 2-3 percent, while others argue for higher targets to give central banks more flexibility in combating recession. The debate highlights the challenges of setting and changing formal inflation targets and the ongoing changes in the factors that drive growth and inflation.

8/25/2023

Fed Chair Jerome Powell warns the fight against inflation is far from over

Federal Reserve Chair Jerome Powell warned that the fight against inflation still has a long way to go, emphasizing the need for extended periods of elevated interest rates to restore price stability. Powell stated that although inflation has cooled, the improvement may be temporary, and the Fed is committed to lowering inflation to their 2% target.

8/26/2023

Christine Lagarde vows to keep EU interest rates high 'as long as necessary' to slay the beast of inflation

President of the European Central Bank, Christine Lagarde, stated that interest rates in the European Union will need to remain high to combat inflation, despite progress being made, emphasizing the challenges posed by disruptions in the global and European economies.

8/31/2023

The Fed's New Key Inflation Rate Just Jumped, But S&P 500 Futures Rise

The Federal Reserve's primary inflation rate showed a decrease in core price pressures in July, but Fed Chair Jerome Powell is now focusing on price changes for services excluding housing and energy, which surged last month, potentially contributing to the gains in the stock market.

9/7/2023

Fed's Logan: Skipping September Rate Hike Possible but More Tightening Still Needed to Tame Inflation

Dallas Federal Reserve Bank President Lorie Logan believes that while it may be appropriate to skip an interest-rate increase at the upcoming meeting, further policy tightening will likely be necessary to bring inflation down to 2% in a timely manner.

9/14/2023

Fed Faces Difficult Choice on Inflation Target as El-Erian Urges Flexibility

The Federal Reserve faces a critical decision at the end of the year that could determine whether the US economy suffers or inflation exceeds target levels, according to economist Mohamed El-Erian. He suggests the central bank must choose between tolerating inflation at 3% or higher, or risking a downturn in the economy.

9/22/2023

Ackman Sees Higher Rates Ahead Due to Persistent Inflation Pressures

Bill Ackman, CEO of Pershing Square Capital, believes that the Federal Reserve's goal of 2% inflation is unlikely to be achieved in the near future due to factors such as ongoing worker's strikes and the rising national debt, and he predicts long-term rates will rise further as a result.