The Fed sometimes prefers to state its objective simply as promoting maximum sustainable growth. Stating its objective in this way allows the Fed to offer a more positive message and leaves implicit the price stability objective in two ways. First, if the economy were to grow above a sustainable rate for long enough, overheating and higher inflation would eventually follow.
A consistent and speedy implementation of the RRF plans geared towards climate and digital transitions remains crucial. The war in Ukraine highlighted the importance of energy independence. Investing into developing renewable energy sources not only reduces geopolitical energy vulnerability; large-scale and ambitious green investment programmes also help offset the negative effects of automation – the loss of jobs and growing regional inequalities.