For example, I’ve spoken to many members of the public who believe that the FOMC’s current highly accommodative policies imply that the FOMC’s inflation objective has shifted upward. I’ve certainly argued that they’re wrong.
We will include carbon prices in our common technical assumptions, regularly evaluate the impact of climate policies and improve our modelling of the impact of extreme weather events on output and inflation in the near term and on our longer-term estimates of potential output.