Federal Reserve Chairman Walsh: Will Review Inflation Framework, Inflation Target at 2%

Odaily Planet Daily News Federal Reserve Chairman Walsh attended the House Financial Services Committee hearing on the "Federal Reserve Semiannual Monetary Policy Report" and stated that he hopes for broader economic growth and more limited increases in inflation. Inflation is a "choice," and now is not the time for the Federal Reserve to shirk its responsibility for inflation. The Fed is committed to price stability, with an inflation target of 2%.

The Federal Reserve has the tools to achieve price stability. The framework adopted by the Federal Reserve in 2020 was a mistake and was unsuccessful. I am pleased that my predecessor later abandoned the 2020 Federal Reserve framework. I will review the inflation framework to understand the causes of inflation and the measures we can take. (Jin Shi)