Powell hinted at a "major overhaul" of the MMF policy framework, re-examining the average inflation targeting system.

Federal Reserve Chairman Powell stated that policymakers are considering adjustments to the core content of the MMF policy guidance framework, including the manner of expressing the "gap" in employment in the USA, as well as thoughts on how to achieve inflation targets. In 2020, the Federal Reserve made two important reforms to guide the economy: first, allowing inflation to moderately exceed 2% for a period after being below 2% for an extended time; second, during periods of low unemployment, the Federal Reserve will no longer preemptively raise interest rates to guard against possible inflationary pressures, aiming to close the gap between actual employment numbers and the maximum employment goal. Powell stated on Thursday at a research meeting regarding the MMF framework, "Officials believe it is necessary to reconsider the expression regarding the employment 'gap.' In last week's meeting, we had similar thoughts about the average inflation targeting system."