Debate on Fed inflation target continues, Claudia Sahm notes

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Artem Shendetskii

28.07.2026

Debate on Fed inflation target continues, Claudia Sahm notes — Fed inflation target approach questioned

Claudia Sahm raises a question ahead of the upcoming Federal Reserve press conference, asking "2% of What?". She expresses interest in whether Warsh agrees that PCE inflation is the official target of the Federal Reserve.

Sahm's comments highlight ongoing discussions surrounding the specifics of the central bank's inflation targeting framework.

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Sahm previously compared central banking forums, noting that the Bank of Italy’s monetary panel better reflected current policy complexities. In a separate observation, she stated that a recent ECB panel discussion did not provide clear guidance on interest rates. Her recent comments continue a pattern of scrutinizing central bank communication on key policy issues.

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