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Colby Smith reports that Federal Reserve Governor Waller defended the central bank's inflation target but objected to using a range instead of a precise number.
Smith highlights Waller's view that adopting a broader target could harm transparency, quoting him as saying that defining inflation by feel rather than measurement could create confusion. Waller drew a comparison, noting "Inflation becomes like pornography. I can't define it, I can't measure it, but I know it when I see it."
Earlier this month, Smith noted that Fed officials were divided on rate hikes at Warsh's first meeting. At the same time, Warsh emphasized continuing Greenspan's approach during his Fed chair swearing-in, as reported by Smith in coverage of the focus on the Greenspan legacy. The contrasting views add context to the ongoing debates about the Fed’s communication strategy.