- In discussing the outlook for the U.S. economy Federal Reserve chair Jerome Powell said he saw a future with the possibility of ups and downs in inflation. He added that he also saw an increased likelihood of “supply shocks” that could disrupt American businesses.
Every five years the Federal Reserve reexamines the framework it uses to ensure its keeping the U.S. economy on a path of full employment and stable prices—a congressionally mandated double goal it must achieve with just a few tools, while keeping stock of evolving macroeconomic conditions, the labor market, and GDP growth. The strategy informs how exactly the Fed will achieve both its goals, which are the bedrock of a stable economy.
