2025 Review: Overview
In 2025, the Federal Reserve undertook its second periodic review of its monetary policy strategy, tools, and communications—the framework it uses to pursue its congressionally assigned goals of maximum employment and price stability. The review was focused on two specific areas: the Federal Open Market Committee's (FOMC) Statement on Longer-Run Goals and Monetary Policy Strategy (PDF), which articulates the Committee's approach to monetary policy, and the Committee's policy communications tools. The Committee's 2 percent longer-run inflation goal was not a focus of the review.
The review process featured three key components:
- The Fed Listens initiative provided an opportunity for policymakers to consult with a broad range of people and groups across the country. At 10 events in 2025, policymakers engaged with a wide range of organizations— workforce development organizations and community colleges, retirees, union members, small business owners, residents of low- and moderate-income communities, and others—to hear about how monetary policy affects people’s daily lives and livelihoods. These events provided valuable feedback on monetary policy.
- The Second Thomas Laubach Research Conference, hosted by the Federal Reserve Board, brought policymakers together with world-class academics and researchers to hear about research central to the framework review.
- The FOMC discussed topics associated with the review at five consecutive meetings beginning in January 2025. This discussion was informed by analytical work by research staff across the Federal Reserve System and was reported in the minutes of those five meetings.
On August 22, 2025, the FOMC released a revised Statement on Longer-Run Goals and Monetary Policy Strategy. This document lays out the goals for monetary policy, articulates the policy framework, and serves as the foundation for the Committee's policy actions. The revised statement indicates that the FOMC intends to conduct a regular review of its monetary policy strategy, tools, and communication practices roughly every five years.