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The Fed: Fed’s Evans wants to get inflation rate up to 2.5%

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The Federal Reserve must aim monetary policy to deliver inflation around a 2.5% annual rate if the central bank is serious about having inflation average 2%, Chicago Fed President Charles Evans said Monday. In a speech at the annual meeting of the American Economics Association, Evans argued that Fed officials shouldn’t settle for just getting inflation slightly above 2%.

“If we try to fine tune a very modest inflation overshoot of only a tenth or two, we run a very large risk of failing to achieve our 2% averaging goal within any reasonable amount of time,” Evans said. “To me, getting inflation moving …

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