(Finance) – “I The benefits of an explicit and transparent policy regime are clearly highlighted by our recent experience. When the FOMC began raising the policy rate in March 2022 to contain inflation, it used forward guidance to make clear our intention to achieve a policy stance tight enough to bring inflation back to 2%.” Christopher Wallermember of the Board of Governors of the US Federal Reserve, at an event in Washington DC.
“I believe that these orientations have made our political actions more effective“, he added, in a speech that focused on historical changes in the Fed’s activity rather than on today’s monetary policy path.
“The FOMC also found 2% to be the inflation target most consistent with achieving our dual mandate,” he said elsewhere. “We have reaffirmed this numerical target several times since 2012 and, as policy has tightened monetary since the beginning of last year, we have made it clear that we are determined to reduce inflation to 2%“.
“Price stability is a primary responsibility of the Federal Reserve – he stated in the conclusions – This is why we have taken strong measures aimed at reducing inflation and why we will continue to work to achieve our goal.”