Vosh: The Federal Reserve needs a brand-new inflation framework

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BlockBeats message, on April 21, Federal Reserve Chair nominee Waller said that if he is appointed and takes charge of the Federal Reserve, he will push for comprehensive reforms in policy-making.

Waller told a Senate committee: “In my view, the Federal Reserve needs fundamental policy reforms. The mistakes made in addressing inflation issues during the COVID-19 pandemic call for such reforms. I believe this means a shift in how policies are implemented. I think this means adopting a different, entirely new inflation framework.”

Waller said that we need new tools, we need new ways of communication. He mentioned forward guidance, economic forecasts, and dot plots. He said the Federal Reserve should wait until the meeting to issue statements, because forecasts can interfere with decision-making.

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