The Federal Reserve is studying a review of employment and inflation strategies
AI Summary
According to BlockBeats, Federal Reserve Chairman Jerome Powell stated that officials agree on the need to reconsider strategies related to partial unemployment and average inflation rates. He refrained from commenting on future forecasts or monetary policy, noting that personal consumption expenditures (PCE) for April could be around 2.2%. Powell confirmed that the zero lower bound still represents a risk that should be addressed within the framework, although it is no longer a major concern given current interest rate levels. Some practices of the Federal Reserve, such as focusing on inflation expectations, are considered permanent. The Federal Reserve is conducting a two-day review of the framework adopted in 2020, which should be adaptable to different scenarios, including a world where supply shocks may become more frequent and persistent
