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ECB’s De Cos Backs Fed-Style Strategy of Inflation Overshoot

(Bloomberg) — European Central Bank policy maker Pablo Hernandez de Cos added his support to arguments for a Federal Reserve-style strategy that allows officials to temporarily overshoot their inflation goal.

Echoing comments a day earlier by President Christine Lagarde, the Bank of Spain governor said it’s worth examining a more “symmetrical” inflation target. The ECB should make it clear “that the degree of acceptance for inflation deviations above the target will be the same as when such deviations are below.”



a man wearing a suit and tie: Key Speakers At The IIF Annual Membership Meeting


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Key Speakers At The IIF Annual Membership Meeting

Pablo Hernandez de Cos

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Photographer: Zach Gibson/Bloomberg

His remarks are the latest signal that the ECB’s first strategic review in almost two decades will likely conclude with a recommendation to change the current inflation goal of “below, but close to, 2%.” Officials have increasingly voiced concern that such phrasing emboldens calls for tighter policy too soon, before price

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Breakingviews – Supreme Court could use a Fed-style makeover

Justice Ruth Bader Ginsburg lies in repose under the Portico at the top of the steps of the U.S. Supreme Court building in Washington, U.S. September 23, 2020. REUTERS/Erin Scott

NEW YORK (Reuters Breakingviews) – The Supreme Court is showing its age. The battle to replace Justice Ruth Bader Ginsburg, who died earlier this month, shows that an institution created in the 18th century is creaking under the weight of an entrenched two-party system. But those who dream of reforming America’s top court could take tips from a much newer body: the Federal Reserve.

While one guards the U.S. Constitution and the other sets interest rates, the two organs have much in common. Both have unelected appointees who supposedly operate free of political pressure. The Fed has its independence, and the president can’t fire a justice if he dislikes a decision. They also both wield tremendous power. The nine justices

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