Instead, when thinking about monetary policy, I believe it is best not to ignore entirely an admittedly imprecise estimate of r* today, but instead to update that estimate as new data on inflation, inflation expectations, employment, growth, and productivity arrive.
Moreover, because monetary policy operates with a lag, and with inflation presently close to the 2 percent goal, it will be especially important to monitor inflation expectations closely using both surveys and financial market data to best calibrate the pace and destination for policy normalization.