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Fed may need 'extreme' policy to deal with future shocks: Evans

Reuters  |  FRANKFURT 

By Ann SaphirFRANKFURT (Reuters) - Chicago Federal Reserve Bank President Charles Evans on Tuesday became the second Fed policymaker in recent days to call for a new approach to rate-setting that would allow the central bank to respond to shocks when interest-rate cuts alone are not enough.One option is so-called price-level targeting, Evans said in remarks prepared for a European Central Bank conference in Frankfurt. Under such a strategy, a central bank combats bouts of too-low inflation by allowing inflation to run too high for a time. Evans championed this policy in 2010 to deal with ...

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First Published: Tue, November 14 2017. 14:06 IST