Tags: Harvard University | Martin Feldstein | Federal Reserve | inflation

Harvard's Martin Feldstein: Fed May Act Too Slowly as Inflation Nears Goal

Wednesday, 04 June 2014 10:39 AM

Harvard University economist Martin Feldstein said he’s concerned Federal Reserve policy makers are too complacent about the risks of inflation that’s already quickening toward the central bank’s objective.

“All of the statements that the Fed has been making indicate that they will probably respond too weakly, too slowly,” Feldstein said on Bloomberg Surveillance with Tom Keene.

“We’re already at a point where inflation is close to their target.”

Fed officials have been predicting inflation will accelerate closer to their 2 percent goal, as they scale back a bond-buying program and consider when to raise the main interest rate.

The Fed’s preferred inflation measure, the personal consumption expenditures index, rose 1.6 percent in April from a year earlier, its biggest jump since November 2012.

Feldstein also said as total net worth for U.S. households rises, “that’s bound to show up, and it is showing up, in higher consumer spending.”

The Federal Open Market Committee’s next scheduled meeting is June 17-18.

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Personal-Finance
Harvard University economist Martin Feldstein said he's concerned Federal Reserve policy makers are too complacent about the risks of inflation that's already quickening toward the central bank's objective.
Harvard University, Martin Feldstein, Federal Reserve, inflation
159
2014-39-04
Wednesday, 04 June 2014 10:39 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved