Some critics have argued that such an approach to policy is too undisciplined--judgmental, seemingly discretionary, and difficult to explain. The Federal Reserve should, some conclude, attempt to be more formal in its operations by tying its actions solely to the prescriptions of a formal policy rule. That any approach along these lines would lead to an improvement in economic performance, however, is highly doubtful.
While economic policy is implemented based on a critical decision that takes account of more than just economic gains and losses for various economic entities, it is difficult to obtain the consent of stakeholders based on an economic model which considers future inflation to be inevitable but cannot predict when it will occur.