Fed should ditch current policy framework, group of former top central bankers says

Former top central bankers advise the Fed to stop prioritizing jobs and focus on inflation, claiming this would improve the central bank’s effectiveness in responding to inflation post-pandemic.

The G30 report highlights that the Fed’s emphasis on maximum employment is unachievable with existing tools, creating risks as inflation continues to rise. The group suggests revising how the Fed manages interest rates and providing more explicit monetary policy guidance.