Svmuu News: Federal Reserve Chair Wash testified at a House Financial Services Committee hearing on the “Federal Reserve’s Semiannual Monetary Policy Report,” stating that he hopes for broader economic growth and a more limited rise in inflation. Inflation is a “choice,” and now is not the time for the Fed to shirk responsibility for inflation. The Fed is committed to price stability, with an inflation target of 2%.
The Federal Reserve possesses the tools to achieve price stability. The Fed’s 2020 framework was a mistake and did not succeed; I am pleased that my predecessor subsequently abandoned the 2020 framework. I will reexamine the inflation framework to understand the causes of inflation and the measures we can take. (Jin Shi)