The Federal Reserve is headed for a major debate over the next 18 months about changing its 2 percent inflation target to allow for more stimulus to battle the next recession, former Fed Chairman Ben Bernanke predicted Monday.
Speaking at an event at the Brookings Institution, where he is a scholar, Bernanke suggested that Trump Fed chairman nominee Jerome Powell is likely to formally begin re-examining the Fed’s target this year and that there “there will be some pretty serious discussions” on changing it in 2019.
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