INSUBCONTINENT EXCLUSIVE:
SAN DIEGO: The Federal Reserve could find itself fighting too-low inflation for years to come, San Francisco Federal Reserve President Mary
new approaches, including one in which the Fed would encourage too-high inflation to make up for periods of low inflation
Early indications are that any changes will likely be modest.
The Fed expects to release the results of its review in mid-2020.
The Fed
lowered US interest rates three times last year, to a target range between 1.5 per cent and 1.75 per cent, in part to keep inflation from
sinking amid rising global economic headwinds.
Now that at least some of those factors, including US-China trade tensions, have eased a bit,
policymakers say they will keep rates where they are, barring a material change in the economic outlook.
Sluggish inflation gives the Fed
room to keep interest rates low and probe how far down it can push unemployment, now near a 50-year low and well below what economists have