Powell Says Fed Can Afford to Watch Data

The transcript discusses the differing perspectives of policy makers and the public on policy paths, emphasizing the strategic use of forward guidance. It highlights the March 2020 FOMC meeting's decision to withhold forecasts due to uncertainty. The role of communication in the current policy tightening cycle is examined, noting its impact on financial conditions. The transcript concludes with considerations for future policy, focusing on monitoring factors to determine the need for further policy firming to achieve inflation targets.

In what context has forward guidance been described as useful during the current tightening cycle?

What factors are being monitored to assess the need for additional policy firming?