Remember that firms and households have entered contracts and entertain economic relationships based on the expectation that we will meet our inflation objective. If we fail, then we make their recovery from the crisis harder. And that loss of credibility would in turn make it harder for us to deliver our mandate in the future.
While financial education is an important first step in enabling consumers to make informed financial decisions, it is also important that consumers be presented with clear and consistent information about their financial products. The Federal Reserve is the primary government agency charged with writing rules governing consumer financial products.