Powell’s Revisionist History of Inflation Targeting

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Powell’s Revisionist History of Inflation Targeting

At a recent press conference, Federal Reserve Chair Jerome Powell claimed that the Fed’s flexible average inflation targeting (FAIT) framework did not contribute to the post-pandemic inflation surge.  There was nothing moderate about the overshoot. It was — it was an exogenous event. It was the pandemic and it happened and, you know, our framework permitted us to act quite vigorously. And we did once we decided that that’s what we should do. Th…