The Federal Open Market Committee needs to go further with its enhancement of communications — including projecting for longer terms and determining an inflation target — to better serve the market, according to Fed governor Frederic S. Mishkin.

“The FOMC should lengthen the horizons of its projections, reach a consensus on a specific numerical value for the mandate-consistent inflation rate, and indicate that this consensus value would be modified only for good scientific reasons,” Mishkin said yesterday at the Peterson Institute for International Economics in Washington, D.C., according to prepared text of the remarks released by the Fed. “I have argued that moving in this direction would improve economic outcomes by anchoring inflation expectations more firmly while allowing sufficient flexibility to ensure that monetary policy would continue to be fully consistent with our dual mandate of price stability and maximum employment.”

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