Christopher Waller

In his first speech as a member of the Federal Reserve’s Board of Governors, Christopher Waller defended Fed independence and reassured his audience that “deficit financing and debt servicing issues play no role in our policy decisions and never will.”  His goal was to dispel the “narrative”…

average inflation targeting: a semi-Wicksellian effort

On August 27, the FOMC announced a new “Statement on Longer-Run Goals and Monetary Policy Strategy,” in which it replaced its earlier Taylor Rule strategy for controlling inflation with what might be called a "Semi-Wicksell Rule." Fed Chair Jerome Powell elaborated on the statement in a speech…

Average inflation targeting or inflation catchup?

Although dedicated Fed watchers long saw it coming, the big news from Jackson Hole is that the Fed now has a new monetary policy strategy—the crowning achievement of the much-ballyhooed review of its "Strategy, Tools, and Communications" it launched in early 2019. It's called "average inflation targeting,"…