The Federal Reserve on Friday announced additional information about the periodic review of its monetary policy strategy, tools, and communications—the framework it uses to pursue its congressionally-assigned goals of maximum employment and price stability.
The review is focused on two specific areas: the Federal Open Market Committee's Statement on Longer-Run Goals and Monetary Policy Strategy, which articulates the Committee's approach to monetary policy; and the Committee's policy communications tools. The Committee's two percent longer-run inflation goal will not be a focus of the review.
"We are open to new ideas and critical feedback and will take onboard lessons from the last five years and adapt our approach where appropriate to best serve the American people, to whom we are accountable," said Federal Reserve Chair Jerome H. Powell.
Like the review that concluded in 2020, the upcoming review will include outreach and public events with a wide range of parties. As part of the outreach effort, the Federal Reserve Board will host a research conference on May 15-16, 2025, with speakers and panelists from outside the Federal Reserve System.
The Federal Reserve will continue to host Fed Listens public events around the country, and discussions among Federal Reserve policymakers will begin with the January 28-29, 2025, FOMC meeting.
At the end of the process, policymakers will assess the information and perspectives gathered during the review and report their findings. The Fed's first review began in 2019 and concluded in summer 2020.
