Comments from Adam Posen on the Federal Reserve's policy updates

PIIE President Adam S. Posen responded to the US monetary policy strategy updates Federal Reserve Chair Jerome H. Powell announced at the Jackson Hole Economic Policy Symposium on August 27, 2020. He welcomed the Fed’s decision to adjust its inflation goal, a medium-term strategy that reflects the economic realities of a low trend growth rate, modest inflation expectations, and rising pre-pandemic labor force participation. Posen also praised the Fed’s open 18-month monetary policy framework review process. He argued the process was as important as the message and transparency has been a way of garnering public trust and Congressional support, providing the Fed with more policy latitude and flexibility.