How will the Federal Reserve revise its monetary policy framework in 2025?
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How will the Federal Reserve revise its monetary policy framework in 2025?
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The Federal Reserve’s “Statement on Longer-Run Goals and Monetary Policy Strategy”—commonly referred to as its monetary policy framework—is composed of guiding principles the central bank uses in setting and communicating policy. Since the Fed last updated this framework in 2020, the global economy has faced unique challenges: COVID-19 shutdowns, widespread supply chain issues, and multiple global wars. In 2025, the Fed Board will be tasked with reviewing the framework, identifying what has worked well and what hasn’t, and updating it accordingly. On this episode of the Brookings Podcast on Economic Activity, David Wessel sits down with Brian Sack and Christina Romer, both former policymakers and authors of new research on the Fed framework's successes and shortfalls.
Show notes and transcript
The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to podcasts@brookings.edu.