Comments from an essay from the SF Fed President
Non voting member John Williams in an essay says the Fed should consider raising the annual target from 2%. He says that the increase would give the Fed more room to respond to a recession.
He also suggests that perhaps the Fed drop the inflation target and instead focus on nominal GDP which is the sum of inflation and real GDP growth.
He adds there is limit to what monetary policy can do. He says that the "burden must also fall on fiscal policy to do its part". He argues that fiscal policy should be more "systematic" in supporting economies during recessions and recoveries.
The "Economic Letter" can be found HERE.
