Fed’s Jefferson: Uncertainty on inflation persistence may warrant stronger policy response

  • Some measures of economic uncertainty, particularly for inflation, are elevated
  • Policy decisions taken under uncertainty may look different from those optimal under certainty

The headline remarks points to the ongoing narrative that they are keeping the door open just in case inflation is stickier than expected. That is the playbook now for all major central banks, with the Fed taking the lead.

This article was written by Justin Low at www.forexlive.com. Source