The former senior Federal Reserve official who helped change how the central bank assesses long-run inflation expectations says policymakers should continue to lean hawkish in their communications, or risk jeopardizing their hard-earned credibility when it comes to anchoring longer-term price pressures. As head of monetary and financial market analysis at the Fed 20 years ago, Brian Sack advocated using a forward measure of inflation expectations to help guide monetary policy. Now, even with consumer prices rising at a 4.9% annual rate, he says the fact the so-called five-year, five-year forward breakeven inflation ... (full story)