The statement also makes clear that the FOMC will take a “balanced approach” in seeking to mitigate deviations of inflation from 2 percent and employment from estimates of its maximum sustainable level. I see this language as entirely consistent with modern descriptions of flexible inflation targeting.
A different approach to inventory management would be another way of mitigating supply chain risks. The aim, then, is to strike a new balance between efficiency and resilience. In the event of a fundamentally changed risk situation, for example due to geopolitical tensions, restructuring supply chains would also seem to make economic sense in terms of efficiency. There is sometimes talk of “friendshoring”, i.e.