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The Federal Reserve's average inflation targeting framework is a real commitment to hold inflation near a 2% average across the 2020s, so an overshoot now has to be offset by undershoots later.

Drawn from what Scott Sumner said, then moved away from

What Scott Sumner actually said

  1. Scott Sumner · held 19 months Monetary economist known for NGDP-level targeting

    I assumed they intended inflation to average roughly 2% during the 2020s.

    The Fed refused to adopt average inflation targeting, and it made a serious policy error precisely because it failed to do average inflation targeting.

Added to korrents 7 Sept 2026 · How quotes work · Something wrong? Tell us

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01 Jun 2021 Oct 2026

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