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Jerome Powell speaks at a Fed meeting
Federal Reserve Board Chair Jerome Powell speaks during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, U.S., July 27, 2022.

Elizabeth Frantz/Reuters

  • Paul Krugman backed calls for the Fed to change its inflation target to 3% – but Mohamed El-Erian says there's little chance of that happening. 
  • The two economists voiced their views ahead of Fed chair Powell's speech at Jackson Hole on Friday. 
  • "It is very hard for a central bank to change an inflation target when it has been missing it so consistently," El-Erian said. 

Paul Krugman thinks the Federal Reserve should bump up its inflation target to 3% – but Mohamed El-Erian says there's no chance. 

The two economists' comments come ahead of Fed chair Jerome Powell's speech at the 2023 Jackson Hole Economic Symposium on Friday.

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economy, economy, Markets, paul-krugman, mohamed-el-erian, mohamed-el-erian-inflation, Inflation, Powell, fed-chair-powell, inflation-target, aggressive-rate-hikes, fed-rate-hikes, us-economy-and-markets
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Paul Krugman and Mohamed El-Erian are divided over the Fed's inflation target a…