The Federal Reserve’s review of how it conducts monetary policy is more likely to produce an evolution, not revolution, of its practices, Federal Reserve Vice Chairman Richard Clarida said.
Speaking at a “Fed Listens” event at the Boston Fed, Clarida said the review of monetary policy strategy, tools, and communication practices is timely because of the current economic stability, decline in neutral interest rates, and changing relationship between inflation and employment.
The Fed Board and Reserve Banks will continue “Fed Listens” events in the coming months and host a research conference in Chicago next month. The Federal Open Market Committee will begin performing its own assessment later this year, with the entities planning to publicly release conclusions during the first half of 2020.
Read Clarida’s Speech