As I said earlier, it is too soon to know how Russia’s attack on Ukraine will affect the U.S. economy, and it may not be much easier by the time of our March meeting. Appropriate Monetary Policy Now let me spell out what my outlook implies for appropriate monetary policy over the course of 2022.
Based on the inflation data in hand, I believe the Fed needs to act promptly to begin tightening monetary policy. As I said earlier, I believe that we have achieved our employment goal and that the labor market will keep improving, which means there should be no delay in responding to inflation that is significantly above our target.