world-economy

Central Banks Grapple With Inflation Forecasting Amid Economic Shifts

Economic policymakers face mounting challenges in predicting price movements as traditional inflation models show signs of strain, according to officials at major central banks. European Central Bank Governing Council member Emmanuel Moulin warned that inflation volatility may increase, complicating monetary policy decisions across the eurozone. Meanwhile, Federal Reserve Chairman Kevin Warsh has assembled a team of external advisers to lead five new task forces aimed at rethinking how the central bank communicates and implements policy. The advisory structure underscores the Fed's effort to strengthen credibility amid evolving economic conditions. Economists say the expanded task force approach could help central banks better navigate changing market conditions and refine forecasting methods that have proven unreliable in recent years.