The Federal Reserve is under pressure from the White House, even as inflation and employment levels have reached a much-needed level, will conduct an extensive review next year of how to guide the US economy as it seeks to become more open and accountable.
The US central bank said yesterday it would hold a series of forums across the country to listen to a wide range of views, and as it ended, it could rethink the tools that Fed uses to achieve its objectives and how to deliver policy to the public and financial markets.
This unusual announcement suggests that Fed Chairman Jerome Powell, who took office last February, wants greater transparency and accountability in order to avoid any destructive political interference. President Donald Trump has publicly criticized the Federal Reserve's gradual interest rate hike, referring to that process threatens economic expansion.
Congress sets the Federal Reserve's goals of maximizing sustainable employment and stable inflation that will not be part of the review, and the Fed does not intend to discuss whether to change its inflation target of 2%.
