John Williams, clueless central banker

The Federal Reserve is not trying to push the inflation rate above 2% target to “make up” for the years that inflation has been running below target, said San Francisco Fed President John Williams on Friday.“The FOMC is trying to get back to 2% and then keep it there” with inflation fluctuating in a symmetric way around the target, Williams told reporters at a briefing following his remarks at the Brookings Institution.The Fed favorite measure of inflation, the personal consumption expenditure price index, has been below 2% since 2012. Some doves have been advocating the Fed allow inflation to overshoot to make up for the past misses.

Backwards. We have consumer deflation now to recover from the prior years  of inflation.  We will continue to have retail deflation until the sandbox is ready to accept senate defaults. We are in a full blown coordination problem trying to get sandbox up before senate collapse.