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The Fed's Hamak has an open attitude towards the reform policy interest rate target.
Jin10 data reported on November 1st, Cleveland Fed President Harmack said on Friday that she is open to reforming the interest rate targets used by the Fed in implementing monetary policy. During an event hosted by the Dallas Fed, she pointed out that the structure of the money market has undergone profound changes, indicating that she is considering shifting from the current federal funds rate target to other interest rate indicators. “I believe we should explore more broadly how to optimally implement monetary policy now,” Harmack emphasized in her speech. This statement echoes the consensus she recently formed with Dallas Fed President Logan that the pricing mechanism in financial markets has gradually detached from the anchoring effect of the traditional federal funds rate.