Eric Swanson

Later this year, the Federal Reserve plans to begin a review of the statement of longer-run goals and monetary policy strategy that it adopted in August 2020. … Eric Swanson of the University of California, Irvine, responded. … Eric Swanson said that the “flexible average inflation targeting framework was a giant step backward in clarity and communication and accountability.” The A (average) in FAIT made it difficult for markets and members of the public to understand how the Fed would respond to varying economic conditions.

For the full story, please visit https://www.brookings.edu/articles/advice-for-the-federal-reserves-review-of-its-monetary-policy-framework/.