MNI BRIEF: FAIT Didn't Affect Fed's Covid Decisions - Williams
MNI (WASHINGTON) - The Fed's flexible average inflation targeting framework didn't play a role in the timing of interest rate increases during the pandemic, New York Fed President John Williams said Friday.
"It did not affect at all the decisions we made," he said. "If you're going to go back to the sequence of decisions we made, it's really about understanding what was happening in inflation and in the global economy in the context of extraordinary uncertainty," he told an economics conference in Nassau, Bahamas.
The Fed is in the midst of a fresh review of its policymaking framework and is reexamining whether its promise to overshoot inflation after a period of undershooting is still relevant after inflation soared to decades highs during the pandemic. (See: MNI: Fed To Examine If Framework Robust To Any Scenario)