Watch Fed Chair Jerome Powell deliver live remarks on policy review
Federal Reserve Chair Jerome Powell to Address Thomas Laubach Research Conference
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Federal Reserve Chair Jerome Powell is set to speak Thursday morning at the Thomas Laubach Research Conference. The focus of Powell’s presentation will be on the review that the central bank is currently conducting of its policy framework. This review, which takes place every five years, serves as a guide for monetary policy decisions moving forward.
After the last review, the Fed introduced a policy known as flexible average inflation targeting. This policy aimed to allow inflation to exceed the central bank’s 2% target for a period of time to support full and inclusive employment, particularly for marginalized communities based on race and gender.
However, following the implementation of this policy, inflation began to rise rapidly, eventually reaching a 40-year high. As a result, the Fed was forced to implement a series of significant interest rate hikes to combat the inflationary pressures.
Key Points:
- The central bank’s policy framework review is a crucial tool for shaping future monetary policy.
- The flexible average inflation targeting policy aimed to support full and inclusive employment but led to a surge in inflation.
- Powell’s speech at the conference will likely address the challenges faced by the Fed in maintaining price stability and promoting economic growth.
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