Federal Reserve Chair Warsh: To Re-examine the Inflation Framework, Inflation Target at 2%

Odaily Odaily reports that Federal Reserve Chair Warsh testified at the House Financial Services Committee hearing on the "Semiannual Monetary Policy Report," stating that he hopes for broader economic growth and a more limited increase in inflation. Inflation is a "choice," and now is not the time for the Fed to shirk its responsibility for inflation. The Fed is committed to price stability, with an inflation target of 2%.

The Fed has the tools to achieve price stability. The framework adopted by the Fed in 2020 was a mistake and was unsuccessful. I am glad my predecessor later abandoned the 2020 Fed framework. I will re-examine the inflation framework to understand the causes of inflation and the measures we can take. (Jin Shi)