The Federal Reserve should consider raising its inflation target, according to a prominent group of economists including Nobel laureate Joseph Stiglitz. In a June 8 letter to Fed chairman Janet Yellen, the economists said the Fed should raise the target so that there is more room to avoid hitting the zero lower bound of the federal funds rates. The Fed kept interest rates at zero for seven years to try to jump start the economy. The letter said there is a no evidence that moderately higher inflation would harm the economy, and a tighter labor market would be helpful. They suggest the Fed establish a blue ribbon commission to make recommendations for the central bank.
Puerto Ricans overwhelmingly voted to become the 51st state yesterday, but a low turnout threatened to undermine the legitimacy of the nonbinding referendum as the island grapples with an economic crisis. According to early results, statehood has 97% support with more than 90% of votes counted, but a turnout of only about 23% reflected the success of a boycott effort led by opponents.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
