Vosh: The Federal Reserve needs a completely new inflation framework

Odaily Planet Daily News reports that Fed Chair nominee Waller stated that if appointed and leading the Federal Reserve, he would push for comprehensive reforms in policy making. Waller told the Senate committee, “In my view, the Federal Reserve needs fundamental policy reforms. The mistakes made in addressing inflation during the COVID-19 pandemic require such reforms, which I believe means a shift in how policies are implemented. I think this calls for a different, entirely new inflation framework.” Waller said we need new tools and new ways of communication, mentioning forward guidance, economic forecasts, and the dot plot. He said the Federal Reserve should wait until the meeting to issue statements because forecasts can hinder decision-making. (Jin10)