Feds Bullard: would take a decade of above target 2.5% inflation to make up for the 5 years of shortfall

Fed dove speaking in St. Louis

He adds:

• US economy around 4.6% below where it would be in nominal terms if Fed had met its inflation target in recent years
• shift from current inflation target to level – targeting approach would take a lot of planning, but could be considered a more optimal approach under some models
• short of a formal shift in framework, policymakers could lean toward allowing inflation above target in order to make up for past shortfalls
• Fed inflation target doesn't do anything about misses