The Federal Open Market Committee (FOMC) has unanimously approved updates to its Statement on Longer-Run Goals and Monetary Policy Strategy. This document outlines the Committee’s approach to monetary policy and forms the basis for its policy decisions. The revised statement highlights that the FOMC’s strategy aims to support maximum employment and stable prices in a variety of economic situations, with the intention of benefiting all Americans.
According to the FOMC, “The updated statement, also commonly known as the consensus statement, emphasizes that the FOMC’s monetary policy strategy is designed to promote the congressionally-assigned goals of maximum employment and stable prices across a broad range of economic conditions for the benefit and well-being of all Americans.”
The initial framework statement was adopted by the Committee in 2012. A public review process first occurred in 2019-20, with another announced in November 2024 leading up to this year’s update. The latest revisions are based on observations from economic developments over the past five years. The FOMC states these changes aim “to enhance the transparency, accountability, and effectiveness of monetary policy.”
As part of its 2025 review process, the FOMC held Fed Listens events at Reserve Banks nationwide and organized a research conference in May. The Committee clarified that its two percent longer-run inflation target was not part of this review.
