Harvard Professor Rogoff Says Fed Won’t Have It Easy Keeping Inflation At 2% In ‘Changed World’

Minister of Foreign Trade of Costa Rica Manuel Tovar speaks during a press conference to present the organisation's updated global economic outlook, in Paris, on June 7, 2023. The OECD slightly raised its growth outlook for the world economy on June 7 as inflation eases and China has dropped Covid restrictions, but it warned the recovery faces a long road. The Paris-based organisation forecast an economic expansion of 2.7 percent, up from 2.6 percent in its previous report in March, with upgrades for the United States, China and the eurozone. AFP/BENZINGA

Former International Monetary Fund chief economist and Harvard University professor Kenneth Rogoff reportedly said the Federal Reserve will have trouble limiting inflation at 2% but noted he doesn’t expect the apex institution to abandon that target.

“I don’t think the Fed is going to have [an] easy time navigating keeping inflation down to 2% in this changed world,” he said, according to a Bloomberg report.