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 Congress to pursue the monetary policy goals of maximum employment and stable prices. The Federal Open Market Committee (FOMC) is the primary monetary policy-setting body of the Federal Reserve. In its Statement on Longer-Run Goals and Monetary Policy Strategy (PDF), 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 thinks about monetary policy. That understanding is important for transparency, accountability, and for the effectiveness of monetary policy. The statement was first published in January 2012. The statement was revised in 2020 and again in 2025 following comprehensive, public reviews of the FOMC's monetary policy strategy, tools, and communication practices. The FOMC plans to conduct a similar review about every five years. Like the previous statements, the current statement explains how the FOMC interprets its goals of maximum employment and stable prices and its strategy for achieving its dual-mandate goals.