The Federal Reserve's New Framework: Context and Consequences

22 Pages Posted: 20 Jan 2022

See all articles by Richard Clarida

Richard Clarida

Board of Governors of the Federal Reserve System

Date Written: January 1, 2022

Abstract

This paper discusses the Federal Reserve's new framework and highlights some important policy implications that flow from the revised consensus statement and the new strategy. In particular, it first discusses the factors that motivated the Federal Reserve in November 2018 to announce it would undertake in 2019 the first-ever public review of its monetary policy strategy, tools, and communication practices. It then considers the major findings of the review as codified in our new Statement on Longer-Run Goals and Monetary Policy Strategy and highlights some important policy implications that flow from them.

Keywords: FOMC, Monetary policy

Suggested Citation

Clarida, Richard, The Federal Reserve's New Framework: Context and Consequences (January 1, 2022). FEDS Working Paper No. 2022-1, Available at SSRN: https://ssrn.com/abstract=4013168 or http://dx.doi.org/10.17016/FEDS.2022.001

Richard Clarida (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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