Fed’s Williams says does not prefer nominal GDP targeting

SAN FRANCISCO, Oct 16: If the United States were hit by a new economic shock, the Federal Reserve could look for new ways to ease policy including targeting pre-crisis economic growth, San Francisco Fed President John William said.
But such a strategy, known as nominal GDP targeting, is not currently his preferred strategy, he told reporters after a speech here.
‘Only if things are really bad’ would he be looking at such an ‘outside-the-box policy,’ Williams said.
‘Right now we are sticking with this tried and true approach, which is keeping inflation near 2 percent, not letting it get too much higher, not letting it get too much lower,’ he said. (agencies)

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