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The U.S. Federal Reserve's pledge in 2020 to sustain "broad-based and inclusive" employment through loose monetary policy was considered a bold response to the pandemic, putting its muscle behind the idea that low unemployment and low inflation could coexist. The ensuing inflation surge has put that view under a spotlight, with scrutiny likely to intensify over the next year as Fed officials prepare for a broad policymaking review that Chair Jerome Powell has said will commence in late 2024. There's been no suggestion the Fed will drop language added to its policy framework three years ago nodding implicitly to the gains disadvantaged groups get from tight labor markets and showing a willingness to take risks with higher inflation in order to let the jobless rate fall as low as possible.

United statesHoward schneiderLoretta mesterDan burnsAndrea ricciMiesha williamsAustan goolsbeeCharles evansJerome powellDonald kohnSpelman college in atlantaChair jerome powellSpelman collegeChicago fed president charles evansChicago fedFed president loretta mester