MNI BRIEF: Fed Review Must Incorporate Many Scenarios - Kugler
MNI (WASHINGTON) - The Federal Reserve's ongoing review of its operating framework should consider a wide variety of potential economic scenarios, Fed Governor Adriana Kugler said Friday, also emphasizing the central bank's commitment to its 2% inflation goal.
"The next framework needs to fold in what we have learned from this last period. We learned that we couldn't take stable prices for granted," she said in Q&A at an Economic Club of Miami event. "We had to deal with these very tight labor markets and wage inflation as well as price inflation that hit levels that we hadn't seen in many decades." (See: MNI: Fed To Examine If Framework Robust To Any Scenario)
"We should consider as many possible situations that could affect this moving forward to learn from that," she said. It is also important the Fed continues to use and can count on many different economic measures to understand the level of tightness and slack in the labor market and goods market.