Waller Advocates Abandoning 2% Inflation Target, Favors Setting a 1.5%-2.5% Range

On July 14, Federal Reserve Governor Waller stated that he prefers setting the inflation target as a range rather than the current single 2% target point, as the latter is too strict in evaluating policy effects. Waller said he personally prefers setting the inflation target at a range of 1.5% to 2.5%, because requiring central banks to precisely control inflation to a specific number is unrealistic. He pointed out that using a single target point to judge the success or failure of monetary policy can sometimes be too harsh, and adopting a target range may better reflect actual economic conditions.