Returning to Price Stability

Abstract: Since I last spoke at this breakfast four years ago, much has transpired. At that time, the economy was in the ninth year of an expansion; labor markets were strong; and inflation was finally moving up to our 2 percent goal after running below this goal for some time. The Fed was continuing to increase its policy rate, the fed funds rate, to be consistent with these healthy economic conditions and the outlook. The economic expansion continued for another two years, until the pandemic changed all that. The resilience shown by households and businesses over the past two challenging years has been truly remarkable. Yet many challenges remain; in particular, inflation, which is at a 40-year high, is a serious burden for households, businesses, and the overall economy. Today, I will focus my remarks on how monetary policy will foster a return to price stability.

Keywords: monetary policy; price stability;

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Speech

Publication Date: 2022-08-31