My colleague David Beckworth has a new NYT piece, here is one bit from it:
Jerome Powell’s political skills also helped bring about a truly historic change at the Federal Reserve in 2020. Under his guidance, the Fed became the first central bank to adopt a “makeup” policy, which requires it to correct for past misses in its inflation target. Central banks actually see a mild amount of inflation as a sign of a healthy, growing modern economy. Inflation, for example, typically runs below its target during recessions and therefore needs to temporarily run above 2 percent afterward to make up for the shortfall. This, in fact, is what the Fed has been attempting over the past year by maintaining its low interest rate target and large-scale asset purchases. This new framework allows the economy to run hot after a recession and make up for lost ground. It means a quicker return to full employment and a more rapid restoration of incomes.
There is much more at the link.