Federal Reserve Chair Powell: To Reassess Inflation Framework, Inflation Target Set at 2%

Odaily Odaily reports that Federal Reserve Chair Powell attended a hearing on the "Federal Reserve's Semiannual Monetary Policy Report" before the House Financial Services Committee, stating a desire for broader economic growth and more limited inflation increases. Inflation is a "choice," and now is not the time for the Fed to shirk responsibility for inflation. The Fed is committed to price stability, with an inflation target of 2%.

The Federal Reserve possesses the tools to achieve price stability. The Fed's framework in 2020 was a mistake and failed. I am glad that my predecessor later abandoned the 2020 Fed framework. I will reassess the inflation framework to understand the causes of inflation and the measures we can take. (Jin Shi)