Former "Fed No. 3" Dudley: Suggests Fed to improve work through six major channels

Former New York Fed president and Bloomberg columnist Dudley believes that if done correctly, the so-called review of monetary policy framework will allow the Federal Reserve to better respond to various economic shocks and policy uncertainties, which is exactly what the current US government is good at. A new G30 report advocates six key reforms: 1. Return to a symmetric 2% inflation target. 2. Strive to achieve employment levels consistent with the 2% inflation target. 3. When the two goals of inflation and employment conflict, which goal is more important? 4. Establish a framework for quantitative easing and tightening policies. 5. Publish staff baseline forecasts and alternative forecasts at the end of each policy meeting. 6. Develop a forward guidance framework.