In the background, various Federal Reserve members have been promoting the idea that price inflation should be allowed to run "hot" above the current target 2% price inflation rate to "make-up" for recent low price inflation, but now, for the first time, we are seeing the idea featured in a high profile story.
Brendan Greeley, US economics editor for The Financial Times, reports in a story that appeared on FT's front page:
The Federal Reserve is considering introducing a rule that would let inflation run above its 2 per cent target, a potentially significant shift in its interest rate policy.
The Fed’s year-long review of its monetary policy tools is due to conclude next year and, according to interviews with current and former policymakers, the central bank is considering a promise that when it misses its inflation target, it will then temporarily raise that target, to make up for lost inflation...
If the Fed adopts this so-called “make-up strategy”, it would mark the biggest shift in how it carries out its interest rate policy since it began to target 2 per cent inflation in 2012.
These types of stories do not appear by accident.