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- Paul Krugman has long been a critic of the Fed's 2% inflation target, and suggests the goal be bumped up to 3%.
- But central bankers' reaction to such suggestions is similar to what "you'd get if you waved a Pride flag at a DeSantis rally," he says.
- In his New York Times op-ed, Krugman advocates for a 3% target and to declare victory over inflation for good.
The Federal Reserve has raised interest rates at the fastest pace since the 1980s over the past 16 months in a bid to cool inflation down to its self-imposed 2% target.
But top economist Paul Krugman sees that goal for price stability as a mistake – and urges central bankers to swallow their pride and update the metric.