The Federal Reserve released the results of its multiyear framework review alongside a speech by Fed Chair Jerome Powell at the Kansas City Fed’s Economic Policy Forum on 27-28 August. While the announcement came earlier than anticipated, the conclusions were in line with the evolutionary, not revolutionary, changes to the Fed’s framework we have long been expecting. The Fed’s revised “Statement on Longer-Run Goals and Monetary Policy Strategy” revealed the central bank’s preference to average 2% inflation over time, but stopped short of implementing a new inflation-targeting rule or preferring anything more than a ... (full story)