The Federal Open Market Committee (FOMC) has unanimously approved updates to its Statement on Longer-Run Goals and Monetary Policy Strategy. This statement outlines the FOMC’s approach to monetary policy and forms the basis for its policy decisions. The updated document highlights that the FOMC’s strategy is intended to support maximum employment and stable prices, in line with congressional mandates, for the benefit of all Americans.
Originally adopted in 2012, the framework underwent its first public review in 2019-20. The most recent review process began after an announcement in November 2024. According to the FOMC, “Today’s updates reflect lessons from the economy over the past five years, and are intended to enhance the transparency, accountability, and effectiveness of monetary policy.”
As part of this review, Fed Listens events were held at Reserve Banks across the country. A research conference also took place in May as part of gathering input for these changes. The Committee stated that “the Committee’s two percent longer-run inflation goal was not a focus of the review.”
“Today’s updates reflect lessons from the economy over the past five years, and are intended to enhance the transparency, accountability, and effectiveness of monetary policy,” according to an official statement.
The revised consensus statement continues to serve as a key guide for future FOMC actions.
