If the Federal Reserve wants to get inflation to meet its target, the central bank’s already historically large balance sheet may need to get much bigger at some point.
Speaking with reporters Friday, Federal Reserve Bank of Chicago President Charles Evans addressed why the Fed has failed to sustainably achieve a 2% annual rise in inflation since adopting that goal in 2012. This failure drove the central bank to overhaul its policy-making regime and say it will now explicitly allow inflation to overshoot 2% to make up for…
