Federal Reserve Chairman Powell stated at the Jackson Hole annual meeting that the Federal Reserve is abandoning the flexible average inflation target framework of 2020. We cannot take stable inflation expectations for granted, and the impact of tariffs on consumer prices is now clearly visible. Relying solely on uncertain estimates of employment that may exceed its maximum sustainable level does not necessarily require tightening policy. If a tight labor market poses a risk to price stability, preemptive action may be necessary.