Fortunately, this episode was short-lived and concentrated in the early stages of the pandemic. The pressure on emerging market capital flows eased after the unprecedented policy interventions carried out by both advanced economies (AEs) and emerging market economies (EMEs).
This further extension of the quarterly projections should provide the public a clearer picture of FOMC participants' policy strategy for promoting maximum employment and price stability over time. Also, increased clarity about the FOMC's views regarding longer-term inflation should help to better stabilize the public's inflation expectations, thus contributing to keeping actual inflation from rising too high or falling too low.