An Update on the Economy and Monetary Policy

Abstract: The key challenge facing the economy is unacceptably high inflation, which reflects the imbalance between strong aggregate demand and constrained aggregate supply. The FOMC is committed to using its tools to get inflation under control, on a downward trajectory to its longer-run inflation goal of 2 percent, and the Committee has begun the process of repositioning monetary policy. This recalibration reflects the evolution of economic conditions, the economic outlook, and the risks around the outlook, and as the recalibration proceeds, it will continue to do so.

Keywords: inflation; monetary policy;

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Speech

Publication Date: 2022-06-02