Kevin Warsh Reaffirms Fed’s 2% PCE Inflation Target

According to Wallstreetcn, Fed Governor Kevin Warsh reiterated in prepared remarks for the Kansas City Fed's economic symposium on Friday that the central bank's inflation target is based on the personal consumption expenditures (PCE) price index, saying the Fed's 2% price-stability goal measured by the PCE price index is a firm and unshakable target. Warsh also said short-term interest rates are the main tool for achieving the dual mandate, while unconventional policies aimed at stimulating economic activity may be suitable in true crisis moments but should otherwise be used cautiously, or not at all.