(Reuters) - Monetary policy rules are “extremely useful” in shaping interest-rate decisions, but the complexity of the economy make human input a must, Federal Reserve Vice Chair Stanley Fischer on Friday.
In remarks prepared for delivery to the University of Chicago Booth School of Business annual monetary policy forum, Fischer did not comment on the stance of U.S. monetary policy or the outlook for the economy.
Instead, he presented an analysis of why the Fed should continue to rely on a committee to decide policy, rather than on a single policymaker or on a policy rule.
His comments come as U.S. lawmakers push legislation that would force the Fed to commit to following a policy rule and to explain itself when it fails to do so, a proposal that Fed Chair Janet Yellen has said would expose the central bank to short-term political pressure.
“Policymakers need to be able to adapt their models promptly and accurately in real time,” Fischer said. “No one model or policy rule can capture the varied experiences and views brought to policymaking by a committee.”
Reporting by Ann Saphir; Editing by Chizu Nomiyama