[FMC 2023] Policy Session 1: Monetary Policy amid Higher Inflation

Inflation began a dramatic rise in the spring of 2021 and has persisted at extremely high levels, causing the Federal Reserve and many central banks around the world to abruptly shift monetary policy stances from highly expansionary toward potentially quite restrictive. This panel will discuss why many central bankers miscalculated the risk of persistently high inflation coming out of the COVID-19 pandemic and the tools and strategies that will be required to regain price stability.
Topics of discussion will include:
Pros and cons of rules-based versus discretionary monetary policy
Future role of "unconventional" tools such as forward guidance and balance sheet policy that played a significant role in the Fed's response to the Global Financial Crisis and its aftermath
Importance of anchoring inflation expectations, especially in light of the recent upward trend in various expectations measures
Relevance of the FOMC's recently revised Statement on Longer-Run Goals and Monetary Policy Strategy from August 2020 that introduced a flexible inflation targeting regime
Moderator: William English, Professor in the Practice of Finance, Yale School of Management
Panelist: Kristin Forbes, Jerome and Dorothy Lemelson Professor of Management and Professor, Global Economics and Management, Massachusetts Institute of Technology Sloan School of Management
Panelist: Troy Davig, Chief US Economist, Symmetry Investments
Panelist: Jan Hatzius, Chief Economist and Head of Global Investment Research, Goldman Sachs
Panelist: John Taylor, Professor of Economics, Stanford University
The Financial Markets Conference, the Atlanta Fed's signature policy and research event, convenes leading experts to discuss emerging financial market issues and their monetary policy implications.
Learn more here: atlfed.org/3IL497q