• Latest
  • Trending
  • All

Federal Open Market Committee announces approval of updates to its Statement on Longer-Run Goals and Monetary Policy Strategy

August 27, 2020 20:28
Dollar lacks upside momentum due to lower Treasury yields

Dollar stays afloat as gold rally pauses

December 5, 2023 07:00
Stocks mixed while gold at fresh all-time highs to start the week

Stocks mixed while gold at fresh all-time highs to start the week

December 4, 2023 08:00
Stocks mixed, dollar indecisive to start the new month

Stocks mixed, dollar indecisive to start the new month

December 1, 2023 08:00
Dollar lacks upside momentum due to lower Treasury yields

USD keeps refreshing August lows

November 30, 2023 07:00
Global stocks mixed with Fed and China in focus

Global stocks mixed with Fed and China in focus

November 29, 2023 08:00
Dollar lacks upside momentum due to lower Treasury yields

Dollar needs fresh impetus

November 28, 2023 07:00
Risk demand keeps waning in muted trading

Risk demand keeps waning in muted trading

November 27, 2023 08:00
Markets mixed in subdued holiday trading

Markets mixed in subdued holiday trading

November 24, 2023 09:01
Dollar lacks upside momentum due to lower Treasury yields

Greenback struggles to retain demand

November 23, 2023 07:00
Dollar lacks upside momentum due to lower Treasury yields

Dollar attracts some demand

November 22, 2023 07:00
Markets await Fed Minutes

Markets await Fed Minutes

November 21, 2023 08:00
Dollar lacks upside momentum due to lower Treasury yields

USD retains bearish bias to start the week

November 20, 2023 07:00
  • Terms & Сonditions
  • Contact
Tuesday, December 5, 2023
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Stocks mixed while gold at fresh all-time highs to start the week

    Stocks mixed while gold at fresh all-time highs to start the week

    Stocks mixed, dollar indecisive to start the new month

    Stocks mixed, dollar indecisive to start the new month

    Global stocks mixed with Fed and China in focus

    Global stocks mixed with Fed and China in focus

    Risk demand keeps waning in muted trading

    Risk demand keeps waning in muted trading

    Markets mixed in subdued holiday trading

    Markets mixed in subdued holiday trading

    Markets await Fed Minutes

    Markets await Fed Minutes

    Risk rally wanes ahead of the weekend

    Risk rally wanes ahead of the weekend

    Markets cautiously await US inflation data

    Markets cautiously await US inflation data

    Powell triggered risk aversion across markets

    Powell triggered risk aversion across markets

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Stocks mixed while gold at fresh all-time highs to start the week

    Stocks mixed while gold at fresh all-time highs to start the week

    Stocks mixed, dollar indecisive to start the new month

    Stocks mixed, dollar indecisive to start the new month

    Global stocks mixed with Fed and China in focus

    Global stocks mixed with Fed and China in focus

    Risk demand keeps waning in muted trading

    Risk demand keeps waning in muted trading

    Markets mixed in subdued holiday trading

    Markets mixed in subdued holiday trading

    Markets await Fed Minutes

    Markets await Fed Minutes

    Risk rally wanes ahead of the weekend

    Risk rally wanes ahead of the weekend

    Markets cautiously await US inflation data

    Markets cautiously await US inflation data

    Powell triggered risk aversion across markets

    Powell triggered risk aversion across markets

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
No Result
View All Result

Home » Federal Open Market Committee announces approval of updates to its Statement on Longer-Run Goals and Monetary Policy Strategy

Federal Open Market Committee announces approval of updates to its Statement on Longer-Run Goals and Monetary Policy Strategy

by FWNews
August 27, 2020 20:28
in Rates
0

Following an extensive review that included numerous public events across the country, the Federal Open Market Committee (FOMC) on Thursday announced the unanimous approval of updates to its Statement on Longer-Run Goals and Monetary Policy Strategy, which articulates its approach to monetary policy and serves as the foundation for its policy actions. The updates reflect changes in the economy over the past decade and how policymakers are taking these changes into account in conducting monetary policy. The updated statement is also intended to enhance the transparency, accountability and effectiveness of monetary policy.

“The economy is always evolving, and the FOMC’s strategy for achieving its goals must adapt to meet the new challenges that arise,” said Federal Reserve Chair Jerome H. Powell. “Our revised statement reflects our appreciation for the benefits of a strong labor market, particularly for many in low- and moderate-income communities, and that a robust job market can be sustained without causing an unwelcome increase in inflation.”

Among the more significant changes to the framework document are:

  • On maximum employment, the FOMC emphasized that maximum employment is a broad-based and inclusive goal and reports that its policy decision will be informed by its “assessments of the shortfalls of employment from its maximum level.” The original document referred to “deviations from its maximum level.”
  • On price stability, the FOMC adjusted its strategy for achieving its longer-run inflation goal of 2 percent by noting that it “seeks to achieve inflation that averages 2 percent over time.” To this end, the revised statement states that “following periods when inflation has been running persistently below 2 percent, appropriate monetary policy will likely aim to achieve inflation moderately above 2 percent for some time.”
  • The updates to the strategy statement explicitly acknowledge the challenges for monetary policy posed by a persistently low interest rate environment. Here in the United States and around the world, monetary policy interest rates are more likely to be constrained by their effective lower-bound than in the past.
  • The Committee first adopted a framework statement in 2012.

    This first public review of the FOMC framework was announced by Chair Powell in November 2018, and involved three distinct components. First, the Federal Reserve hosted a series of 15 Fed Listens events across the country to engage with employee groups and union members, small business owners, residents of low- and moderate-income communities, retirees, and others to hear a wide range of perspectives about how monetary policy decisions affect their communities. A report summarizing all of those events is available here: https://www.federalreserve.gov/publications/files/fedlistens-report-20200612.pdf.

    Second, the Federal Reserve in June 2019 convened a research conference at which prominent academic experts addressed economic topics central to the review. That conference program, links to the conference papers and presentations, and links to session videos are available here: https://www.federalreserve.gov/conferences/conference-monetary-policy-strategy-tools-communications-20190605.htm.

    Finally, the Committee explored the range of issues that were brought to light during the course of the review in five consecutive meetings beginning in July 2019. Analytical staff work put together by teams across the Federal Reserve System provided essential background for the Committee’s discussions. Minutes of those meetings are available here: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm and a collection of those papers is available here: https://www.federalreserve.gov/monetarypolicy/review-of-monetary-policy-strategy-tools-and-communications-system-analytical-work.htm.

    The FOMC reported it would continue its practice of considering the Statement of Longer-Run Goals and Policy each January and that it intends to undertake a public review of its monetary policy strategy, tools, and communication practices roughly every 5 years.

    Share2Tweet1
    ADVERTISEMENT
    FWNews

    FWNews

    Track the pulse of the market

    Related Posts

    Dollar lacks upside momentum due to lower Treasury yields
    Technical analysis

    Dollar stays afloat as gold rally pauses

    December 5, 2023 07:00
    10
    Stocks mixed while gold at fresh all-time highs to start the week
    Fundamental analysis

    Stocks mixed while gold at fresh all-time highs to start the week

    December 4, 2023 08:00
    11
    Stocks mixed, dollar indecisive to start the new month
    Fundamental analysis

    Stocks mixed, dollar indecisive to start the new month

    December 1, 2023 08:00
    12
    Dollar lacks upside momentum due to lower Treasury yields
    Technical analysis

    USD keeps refreshing August lows

    November 30, 2023 07:00
    12
    Global stocks mixed with Fed and China in focus
    Fundamental analysis

    Global stocks mixed with Fed and China in focus

    November 29, 2023 08:00
    12
    Dollar lacks upside momentum due to lower Treasury yields
    Technical analysis

    Dollar needs fresh impetus

    November 28, 2023 07:00
    13

    Leave Your Opinion Cancel reply

    Your email address will not be published. Required fields are marked *

    Recommended

    Dollar lacks upside momentum due to lower Treasury yields

    Dollar steadies after CPI-fueled rally

    February 11, 2022 15:00
    13
    The dollar is mixed-to-lower against the majors to start the week

    Stocks hesitate amid heightened coronavirus-related uncertainty

    June 29, 2020 06:29
    18
    Pound corrects higher due to dollar weakness

    Greenback keeps regaining ground across the board

    March 4, 2021 06:37
    14

    Ads

    Shneider Electric

    Most Popular

    A slow start to the week in FX markets
    Technical analysis

    Dollar regains ground to start the week

    January 25, 2021 07:25
    124
    A slow start to the week in FX markets
    Technical analysis

    Greenback advances modestly amid strong data

    May 28, 2021 07:38
    110
    Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war
    News

    Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war

    July 28, 2020 08:29
    95
    FWNews

    Copyright © 2022 FWNews

    • Terms & Сonditions
    • Contact
    No Result
    View All Result
    • FUNDAMENTALS
    • TECHNICALS
    • Interest Rates
    • Economic calendar
    • Backstage

    Copyright © 2022 FWNews