Fed’s Williams says 2% inflation target ‘critical’


FILE PHOTO: John Williams, Chief Executive Officer of the Federal Reserve Bank of New York, speaks at an event in New York, U.S., November 6, 2019. REUTERS/Carlo Allegri/File Photo

PALO ALTO: The US central bank’s 2% target for inflation is key to achieving price stability and essential for ensuring economic prosperity, New York Federal Reserve (Fed) Bank president John Williams says.

His defence of the inflation target comes amid persistent calls from some corners of the Fed to overhaul the way it guides, sets and communicates policy.

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