Mester not yet convinced on alternative monetary policy frameworks

Loretta Mester

The Federal Reserve needs to understand more about the assumptions that models of alternative monetary policy frameworks make before considering a move to a new regime, Cleveland Fed president Loretta Mester said during a panel discussion.

This year, the Fed is reviewing the framework it uses to make monetary policy decisions. A significant focus of the Fed’s programme is around alternative inflation-targeting regimes, such as price-level targeting, averaging inflation targeting and nominal GDP

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