Fed Faces Calls to Clarify Stance on Inflation After Misses

• The Fed's 2% average inflation target suggests it should aim for inflation below 2% for years to offset recent high inflation, but the Fed has not indicated plans to do so.

• The Fed's lack of clarity on how much its framework applies to the current high inflation situation creates some ambiguity that experts say should be addressed.

• The Fed adopted average inflation targeting in 2020 to address chronically low inflation, not expecting the massive surge in inflation that began in 2021.

• With inflation expectations still anchored, the communication confusion is not an urgent issue but one the Fed could clarify as it adjusts policies.

• Experts say Fed officials should be more transparent about the meaning of average inflation targeting and disavow any prolonged period of sub-2% inflation.