The Fed has and must have a commitment to price stability. The uncertainties on the upside (for inflation) have only gotten bigger since Katrina slammed into the Gulf Coast.
"Janet Louise Yellen" is an American economist. She is the Chair of the Federal Reserve/Chair of the Board of Governors of the Federal Reserve System, previously serving as Vice Chair from 2010 to 2014.
Previously, she was President and Chief Executive Officer of the Federal Reserve Bank of San Francisco; Chair of the White House Council of Economic Advisers under President of the United States/President Bill Clinton; and Professor Emerita at the University of California, Berkeley, Haas School of Business. On January 6, 2014, the United States Senate confirmed Yellen's nomination to be Chair of the Federal Reserve Board of Governors. Yellen was sworn in on February 3, 2014, making her the first woman to hold the position.More Janet Yellen on Wikipedia.
Higher oil prices may be partly passed through to core inflation at least for a time.
Estimates of the extent of spending are escalating, and the recovery and bounce-back, fueled by massive fiscal stimulus, could propel the U.S. economy on an unsustainable upward trajectory.
The Fed has and must have a commitment to price stability.
The Federal Reserve must deliver -- again and again -- on its commitment to price stability.
Has little scope to cushion the immediate economic fallout from such a severe and sudden blow to a region.
One option that is clearly not on the table is allowing an unacceptable rise in inflation.