With this confidence, inflation and inflation expectations, as well as interest rates, have become more stable - and this benefits the whole economy. How did we achieve this confidence dividend? By establishing a track record of credible, consistent monetary policy, together with greater accountability and transparency.
See Brendan M. Price (2022), “Long COVID, Cognitive Impairment, and the Stalled Decline in Disability Rates,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, August 5), https://doi.org/10.17016/2380-7172.3189.