“The rebound from ultra-depressed levels seen during the pandemic’s initial onslaught is beneficial, Sack says. But advancing much further risks pushing inflation expectations to levels that would make it harder for the Fed to meet its twin objectives of stable prices and maximum employment. “Inflation expectations have already risen to a level consistent with the Fed’s mandate, so my view is that the Fed should not allow them to rise further,” said Sack, who also formerly headed the New York Fed’s markets group. “It may be time to adjust the policy message to reflect that.”
Read More at Bloomberg
