The first is that our bond purchase program has played an important role in achieving this progress towards our goals, complementing our other monetary policy measures. The purchases have lowered funding costs, supported asset values and led to a lower exchange rate than would otherwise have been the case. As a result, more people have jobs and inflation is closer to the target.
While geoeconomic fragmentation is rooted in concerns over and beyond economics, policymakers need to consider ways to reduce the costs of any such adjustment. Limiting reshoring to vital goods that are most susceptible to supply chain disruptions could help reduce the depth of fragmentation.