Similar Stories to Central Banks Falling Short Of 2 Pct. Inflation Target on Bing News

[...] the question has arisen of whether the Fed and the ECB should recognize that 2 percent inflation in a global economy awash in cheap oil, available workers and money-saving technologies might be too ambitious and should lower their targets. The major central banks' historically low interest rates and mass bond purchases have failed to offset the pressures of lower energy prices and tepid consumer demand. The credibility of the Fed and ECB hinges in part on their ability to achieve that level of inflation. [...] as that target remains distant, central bankers must maintain the extraordinary interventions they began with the 2008 global financial meltdown. Mohamed El-Erian, chief economic adviser at Allianz and a former deputy director of the International Monetary Fund, says the dilemma stems from an overreliance on interest-rate policies to support a floundering Europe. "When the world economy is fragile, you end up restraining demand," says Stephen Oliner, a former Fed economist who is now a resident scholar at the American Enterprise Institute, a conservative think tank.

BING NEWS:
  • Mix of Slowing Growth, Firm Inflation Worries Investors
    Another high inflation reading will continue to make it difficult for the Fed to cut rates in the near term.
    04/25/2024 - 6:32 pm | View Link
  • Fall in inflation doesn't mean we should cut interest rates, Bank of England's Pill says
    Fall in inflation doesn't mean we should cut interest rates, Bank of England's Pill says - Pill also said it would be better for the Bank of England to cut interest rates too late than too early ...
    04/23/2024 - 4:21 am | View Link
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