On August 27, 2020, the Federal Open Market Committee (FOMC) unanimously approved a revised Statement on Longer-Run Goals and Monetary Policy Strategy, which represents a robust evolution of its monetary policy framework. At its September and December FOMC meetings, the Committee made material changes to its forward guidance to bring it into line with the new policy framework. Before I discuss the new framework in detail and the policy implications that flow from it, please allow me to provide some background on the reasons the Committee felt that our framework needed to evolve. As my FOMC colleagues and I indicated ... (full story)