From Yahoo Finance: 2025-04-30 12:01:00

A group of former central bankers urges the Federal Reserve to prioritize inflation over employment, arguing the current strategy is ineffective. The Fed is conducting a review of its operating framework, with officials considering revisions due to inflation struggles and economic complexities arising from the pandemic.

The group believes the Fed’s approach, developed during a period of low inflation and interest rates, hindered the central bank’s response to rising inflation and economic risks post-pandemic. The report highlights the need for the Fed to be more preemptive in managing inflation, providing clearer guidance on interest rates and bond purchases to maintain control over public expectations.

Read more: Fed should ditch current policy framework, group of former top central bankers says