Powell acknowledged the current framework was designed at a time of persistently low interest rates and low inflation.
Federal Reserve Chair Jerome Powell said policymakers are weighing changes to key parts of the framework that guides their monetary policy decisions, including how they think about shortfalls in US employment and approach their inflation target.
Officials “have indicated that they thought it would be appropriate to reconsider the language around shortfalls. And at our meeting last week, we had a similar take on average inflation targeting,” Powell said Thursday in remarks prepared for a research conference on the Fed’s monetary policy framework.
