Jason Furman on what the Federal Reserve should do now

Jason Furman discussed his analysis, “What the Federal Reserve Should Do Now: An Elaboration," explaining why the Federal Reserve has the right framework but needs to make a midcourse correction of its implementation to get inflation under control. He also discussed the fiscal context for inflation and his analysis of why the Build Back Better legislation before Congress will not materially change the medium-term inflation outlook and should be evaluated based on what it would do to address chronic challenges like inadequate opportunity for children and climate change. The presentation was followed by a discussion with PIIE president Adam Posen.