The long-awaited outcome of the Federal Reserve’s monetary strategy review is finally out. This column argues that while the ‘Powell doctrine’ responds to a genuine need to address issues in the Fed’s policy framework, it also introduces complexities in the interpretation and implementation of monetary policy which are likely to become more apparent over time. The hurdles involved do not have easy solutions, and other central banks pondering their own monetary policy framework are well advised to take heed.
The long-awaited outcome of the Fed’s monetary strategy review is finally out. The announcement took the form, on 27 August, of a speech by Chairman Jerome Powell,1 delivered online at the annual Jackson Hole conference and a ‘consensus statement’2 by theRead More »