Svmuureports that Federal Reserve Governor Bowman stated that if the Fed maintains credibility in its monetary policy, it can overlook energy shocks. If war-driven inflation spreads, consideration will be given to adjusting the policy outlook.
The Fed's current "moderately accommodative" policy is aimed at boosting employment and lowering inflation, but progress in reducing inflation has stalled. It was appropriate for the Fed to maintain an accommodative bias in its April 29 policy statement. (Jin Shi)