Federal Reserve Commitment to a Rule and Credible Monetary Policy

Jai Kedia, a monetary policy expert, dives deep into the Federal Reserve's commitment to a policy rule and its implications for institutional credibility. He discusses how adherence to consistent monetary rules could enhance accountability and stability. Kedia highlights the challenges of balancing transparency with flexibility in Fed policy, while critiquing the previous dismissal of inflation as 'transitory.' He emphasizes the importance of a rules-based approach to foster greater predictability in economic outcomes.