The Federal Reserve is reviewing its monetary policy framework in light of the experience of the past five years, Fed Chairman Jerome Powell said.
Details: Speaking in Washington, Powell said the review also will consider possible enhancements to the Federal Open Market Committee’s policy communication tools related to forecasts, uncertainty, and risk.
Consensus Statement: In the coming months, the Fed will consider specific changes to the FOMC’s consensus statement, Powell said. For instance, participants have indicated a need to reconsider language around shortfalls and inflation targeting while ensuring adaptability to a wide range of economic environments and developments.