“In circumstances in which macroprudential policy cannot on its own eliminate the amplification of shocks through financial vulnerabilities, in a low-inflation environment, monetary policy has been relatively more accommodative than would be prescribed by a conventional monetary policy rule in order to reduce the likelihood of adverse output and employment outcomes,” she said.
“But in a high-inflation environment, monetary policy is restrictive to restore price stability and maintain anchored inflation expectations.”
Her message was echoed by other policy makers speaking Friday. San Francisco Fed chief Mary Daly said in an interview with Newsy that reducing inflation was the number one priority and officials are “resolute, we’re united, we’re focused on bringing those numbers down.
Richmond’s Thomas Barkin separately told a meeting of the Northern Virginia Hispanic Chamber of Commerce in Tysons Corner that “the public knows we are taking this seriously.”
--With assistance from Catarina Saraiva and Craig Torres.
This article was provided by Bloomberg News.