What is the Statement on Longer-Run Goals and Monetary Policy Strategy, and why does the Federal Open Market Committee publish it?
The Federal Reserve is directed by the Congress to pursue the monetary policy goals of maximum employment and stable prices. The Federal Open Market Committee (FOMC) is the main monetary policy-setting body of the Federal Reserve. In its Statement on Longer-Run Goals and Monetary Policy Strategy, the FOMC explains its framework for the policy actions it takes to achieve those goals.
Publishing the statement helps the public better understand how the FOMC interprets its mandate from Congress. The statement was first published in January 2012 and was reaffirmed by the FOMC each year until 2020. In 2020, the FOMC made revisions to the statement following its first-ever comprehensive, public review of its monetary policy strategy, tools, and communication practices. The FOMC plans to conduct a similar review about every five years. Like the previous statement, the revised statement explains how the FOMC interprets its goals of maximum employment and stable prices.
Statement on Longer-Run Goals and Monetary Policy Strategy
Amended August 27, 2020