The forward-looking framework of inflation targeting also allows us to handle temporary supply shocks, so long as these shocks do not feed into inflation expectations. The monetary credibility gained through our inflation-targeting system means that changes in volatile energy or food prices no longer feed into other prices and into wages the way they did in the past.
*  *  *  Chairman Ryan, Vice Chairman Garrett, Ranking Member Van Hollen, and other members of the Committee, I appreciate this opportunity to discuss my views on the economic outlook, monetary policy, and the challenges facing federal fiscal policymakers.