The biggest mistake we could make would be to underestimate the rapidity of the pace of history. Everything is possible. 2  BIS Review 116/2007  - What do you think about global imbalances? In particular, the fall of the USD can only worsen these imbalances. How to solve this problem? As regards the exchange rate I already said what my position was.
However, I expect most of this increase to be transitory and for inflation to return to—or perhaps run somewhat above—our 2 percent longer-run goal in 2022 and 2023. This outcome would be entirely consistent with the new framework we adopted in August 2020 and began to implement at our September 2020 FOMC meeting.