Reported 5 months ago
Loretta J. Mester, Cleveland Fed President, emphasized the need for central bankers to acknowledge uncertainties in the economy, especially in the post-pandemic era, during a conference at Columbia University. Mester suggested that the Federal Reserve should communicate more openly about the various potential economic scenarios and how policymakers would react to them, rather than focusing solely on a single baseline outlook. She also discussed the challenges central banks face in navigating the changing economic landscape, such as the impact of bond-buying and shifts in the housing market on monetary policy effectiveness. Mester highlighted the importance of enhancing the Fed's credibility by openly addressing uncertainties and potential risks in economic projections.
Source: YAHOO