1–51. The Fed raised rates more than other major central banks after 2008 but eased policy three times in 2019, apparently spooked by … December 2, 2020. Because the economy is always evolving, the FOMC's strategy for achieving its goals—our policy framework—must adapt to meet the new challenges that arise. The key innovations in our new consensus statement reflect the changes in the economy I described. Feiveson, Laura, Nils Goernemann, Julie Hotchkiss, Karel Mertens, and Jae Sim (2020). 443–97. For the Fed, however, a fresh look had become particularly important because changes in the economic environment suggested that revisions to the existing framework could be helpful to policymakers in addressing future challenges. New Economic Challenges and the Fed's Monetary Policy Review. "Productivity and Potential Output before, during, and after the Great Recession," in Jonathan A. Parker and Michael Woodford, eds., NBER Macroeconomics Annual 2014, vol. "Distributional Considerations for Monetary Policy Strategy," Finance and Economics Discussion Series 2020-073. Fed Listens: Perspectives from the Public (PDF), report. 2020 Audi A7 Review. 43 (June), pp. The Fed bought government bonds. We have also made important changes with regard to the price-stability side of our mandate. We began our review with these changes in the economy in mind. ——— (2019). All Lists; Video. 3, June 2020 3 The Long and Short of It: The Post-Crisis Corporate CDS Market information warehouse (TIW). By the early 2000s, many central banks around the world had adopted a monetary policy framework known as inflation targeting.5 Although the precise features of inflation targeting differed from country to country, the core framework always articulated an inflation goal as a primary objective of monetary policy. 1–16. 17 Targeting the interest rate spread is the same as targeting the spread between CPI spit and futures. Lists. See Caldara and others (2020). A … Bernanke, Ben S., Thomas Laubach, Frederic S. Mishkin, and Adam S. Posen (1999). Washington: Board of Governors of the Federal Reserve System, August. For evidence on the secular decline in interest rates in the United States and abroad see, for instance, Holston, Laubach, and Williams (2017) and Lunsford and West (2019). Bond Report 10-year Treasury yield nears 0.75% after Fed says it will aim for 2% average inflation Published: Aug. 27, 2020 at 3:57 p.m. Many of these options are set out in Federal Reserve Board (2019). Return to text, 2. See also Fernald (2018), Gordon (2017), and Powell (2018). Bernanke, Ben S., and Frederic S. Mishkin (1997). New Statement on Longer-Run Goals and Monetary Policy Strategy This decline increases the risk that the policy rate will fall to its effective lower bound near zero, thus constraining the ability to support the economy through reductions in the federal funds rate and, consequently, increasing risks that employment and inflation will fall below levels consistent with the dual mandate goals. June 4-5, 2019 And with the ever-changing economy, future reviews will allow us to take a step back, reflect on what we have learned, and adapt our practices as we strive to achieve our dual-mandate goals. As measured by the annual change in the price index for personal consumption expenditures. Third, and on a happier note, the record-long expansion that ended earlier this year led to the best labor market we had seen in some time. References Having declined significantly in the five years following the crisis, the labor force participation rate flattened out and began rising even though the aging of the population suggested that it should keep falling.13 For individuals in their prime working years, the participation rate fully retraced its post-crisis decline, defying earlier assessments that the Global Financial Crisis might cause permanent structural damage to the labor market. The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. Return to text, 6. Information on the individual Fed Listens events is available on the Board's website at https://www.federalreserve.gov/monetarypolicy/review-of-monetary-policy-strategy-tools-and-communications-fed-listens-events.htm. The significant shifts in estimates of the natural rate of unemployment over the past decade reinforce this point. "Federal Reserve to Review Strategies, Tools, and Communication Practices It Uses to Pursue Its Mandate of Maximum Employment and Price Stability," press release, November 15. At "Navigating the Decade Ahead: Implications for Monetary Policy," an economic policy symposium sponsored by the Federal Reserve Bank … 16 (February), pp. It was sometimes appropriate for the Fed to tighten monetary policy as employment rose toward its estimated maximum level in order to stave off an unwelcome rise in inflation. A discussion of various concepts of unemployment rate benchmarks that are frequently used by policymakers for assessing the current state of the economy is presented in Crump and others (2020). See https://www.federalreserve.gov/conferences/conference-monetary-policy-strategy-tools-communications-20190605.htm for the conference program, links to the conference papers and presentations, and links to session videos. At the same time, however, there are some important new features. The Fed bought government bonds. How the Fed’s Policy Review received an incomplete grade Posted by Cam Hui - September 5, 2020 It has been over a week since Jerome Powell’s virtual Jackson Hole speech in which he laid out the Fed’s revised its updates to its Statement on Longer-Run Goals and Monetary Policy Strategy after a long and extensive internal review. See the overview presented in Altig and others (2020). Altig, David, Jeff Fuhrer, Marc P. Giannoni, and Thomas Laubach (2020). The change to "shortfalls" clarifies that, going forward, employment can run at or above real-time estimates of its maximum level without causing concern, unless accompanied by signs of unwanted increases in inflation or the emergence of other risks that could impede the attainment of our goals.25 Of course, when employment is below its maximum level, as is clearly the case now, we will actively seek to minimize that shortfall by using our tools to support economic growth and job creation. The 2012 statement was a significant milestone, reflecting lessons learned from fighting high inflation as well as from experience around the world with flexible inflation targeting. A key purpose of our review has been to take stock of the lessons learned over this period and identify any further changes in our monetary policy framework that could enhance our ability to achieve our maximum-employment and price-stability objectives in the years ahead.9, Our evolving understanding of four key economic developments motivated our review. For example, since January 2012, the median estimate of potential growth from FOMC participants has fallen from 2.5 percent to 1.8 percent (see figure 1). "Some Evidence on Secular Drivers of U.S. There's good reason. "How the World Achieved Consensus on Monetary Policy," Journal of Economic Perspectives, vol. Daly, Mary C. (2020). Tootell (2018). With regard to the employment side of our mandate, our revised statement emphasizes that maximum employment is a broad-based and inclusive goal. For a readable explanation of inflation targeting, see Bernanke and Mishkin (1997); also see Bernanke and others (1999). Inflation targeting was also associated with increased communication and transparency designed to clarify the central bank's policy intentions. “The Federal Reserve’s Review of its Monetary Policy Framework: A Roadmap,” FEDS Notes. On November 19, 2020, Treasury Secretary Steven Mnuchin asked the Federal Reserve … Aaronson, Stephanie, Mary C. Daly, William Wascher, and David W. Wilcox (2019). Lists. See also Daly (2020) and Aaronson and others (2019). The muted responsiveness of inflation to labor market tightness, which we refer to as the flattening of the Phillips curve, also contributed to low inflation outcomes.17 In addition, longer-term inflation expectations, which we have long seen as an important driver of actual inflation, and global disinflationary pressures may have been holding down inflation more than was generally anticipated. Blanchard, Olivier J., Eugenio M. Cerutti, and Lawrence Summers (2015). Volcker, Paul A. Inflation Primed For Higher Levels, Admittingly From A Low Base. Return to text, 26. Finance and Economics Discussion Series 2020-069. 1. Fast forward to March of 2020, as the economy shut down due to the Great Virus Crisis (aptly named by Dr. Ed Yardeni). Aug 27, 2020 The Federal Reserve on Thursday said it was adjusting its long-standing dual mandate of full employment and price stability, adopting what … Aug 27, 2020 The Federal Reserve on Thursday said it was adjusting its long-standing dual mandate of full employment and price stability, adopting what was widely interpreted as … His pledge to purchase corporate debt, including some with a junk credit rating, has boosted bond and equity prices since March, despite lousy economic projections. In 2019, the Federal Reserve launched its first-ever comprehensive and public review of the monetary policy framework—the strategy, tools, and communication practices—it employs to achieve its congressionally mandated goals of maximum employment and price stability. Journal of Economic Perspectives, vol. (2008). Holston, Kathryn, Thomas Laubach, and John C. Williams (2017). Return to text, 24. Fernald, John G. (2015). ... Federal Reserve officials have moved closer to a consensus on how to take further action to help the economy weather the protracted coronavirus crisis, amid growing worries within the central bank about risks to the outlook. Federal Reserve Bank of Chicago. 1. Princeton, N.J.: Princeton University Press. Before the pandemic, there was every reason to expect that these gains would continue. As is appropriate in our democratic society, we have sought extensive engagement with the public throughout the review. A special issue of the International Journal of Central Banking (February 2020) included five of the seven papers presented at the conference (see https://www.ijcb.org/journal/ijcb2002.htm). This new era brought new challenges to the conduct of monetary policy. Rise in covid-19 cases is concerning, could prove challenging for next few months. See also the recent evidence in Lopez-Salido and others (2020). Visit our Online Order Desk. 47–68. Chair Paul Volcker brought that focus to bear, and the "Volcker disinflation," with the continuing stewardship of Alan Greenspan, led to the stabilization of inflation and inflation expectations in the 1990s at around 2 percent. "Okun Revisited: Who Benefits Most from a Strong Economy?" The success of monetary policy in taming high and variable inflation in the 1980s and 1990s was instrumental in anchoring inflation expectations at low levels. 1. WASHINGTON (AP) — Treasury Secretary Steven Mnuchin is defending his decision to close down a number of emergency Federal Reserve loan programs at a time when coronavirus cases are surging. ... Monetarists argued that lags in monetary policy can be upwards of nine months. Return to text, 11. Italics added for emphasis. Review of Monetary Policy Strategy, Tools, and Communications, Banking Applications & Legal Developments, Financial Market Utilities & Infrastructures, Fed Listens: Perspectives from the Public (PDF) The Fed Listens events helped us connect with our core constituency, the American people, and hear directly how their everyday lives are affected by our policies. Chicago: University of Chicago Press, pp. A central part of this statement was the articulation of a longer-run inflation goal of 2 percent.7 Because the structure of the labor market is strongly influenced by nonmonetary factors that can change over time, the Committee did not set a numerical objective for maximum employment. The statement largely articulated the policy framework the Committee had been following for some time.8, Motivation for the Review Return to text, 7. In addition, because real-time estimates are highly uncertain, we no longer refer to estimates of the natural rate of unemployment from the SEP in our consensus statement. Washington: Board of Governors of the Federal Reserve System, August. ... 7:16 pm Sun. American Eagle $2,076.01 American Buffalo $2,115.18 Canadian Maple Leaf … S59–75. Svensson, Lars E. O. August 27, 2020. The Federal Reserve Board and the Federal Open Market Committee on Wednesday released the attached minutes of the Committee meeting held on November 4-5, 2020. Thereafter, as the economy strengthened, the federal funds rate reached a peak just above 2 percent. See, for instance, Goodfriend (2007). The Fed … The 2012 statement noted that the Committee would mitigate "deviations" of employment from the Committee's assessments of its maximum level, suggesting that the Committee would actively seek to lower employment if it assessed that employment was above the Committee's estimate of its maximum level. This decline in assessments of the neutral federal funds rate has profound implications for monetary policy. 1– 18. Kansas City, Mo. More troubling has been the decline in productivity growth, which is the primary driver of improving living standards over time.10. Arias, Jonas, Martin Bodenstein, Hess Chung, Thorsten Drautzburg, and Andrea Raffo (2020). Washington: Board of Governors of the Federal Reserve System, August 27. This change reflects our appreciation for the benefits of a strong labor market, particularly for many in low- and moderate-income communities.23 In addition, our revised statement says that our policy decision will be informed by our "assessments of the shortfalls of employment from its maximum level" rather than by "deviations from its maximum level" as in our previous statement.24 This change may appear subtle, but it reflects our view that a robust job market can be sustained without causing an outbreak of inflation. One of the clear messages we heard was that the strong labor market that prevailed before the pandemic was generating employment opportunities for many Americans who in the past had not found jobs readily available. Return to text, 10. ——— (2018). The Rise and Fall of American Growth: The U.S. Standard of Living since the Civil War. : FRB Kansas City, pp. One big change would be a harder commitment to getting inflation higher, through a … 607–54. For the past year and a half, my colleagues and I on the Federal Open Market Committee (FOMC) have been conducting the first-ever public review of our monetary policy framework.1 Earlier today we released a revised Statement on Longer-Run Goals and Monetary Policy Strategy, a document that lays out our goals, articulates our framework for monetary policy, and serves as the foundation for our policy actions.2 Today I will discuss our review, the changes in the economy that motivated us to undertake it, and our revised statement, which encapsulates the main conclusions of the review. The completion of the original consensus statement in January 2012 occurred early on in the recovery from the Global Financial Crisis, when notions of what the "new normal" might bring were quite uncertain. This document lays out the goals for monetary policy, articulates the policy framework, and serves as the foundation for the Committee's policy actions. "Unemployment Rate Benchmarks," Finance and Economics Discussion Series 2020-072. "Meeting of the Federal Open Market Committee on January 24–25, 2012 (PDF)," transcript. Princeton, N.J.: Princeton University Press. Washington: Board of Governors of the Federal Reserve System, August. Return to text, 20. 11 (October), pp. The Federal Reserve will wrap up its review of monetary-policy strategy, tools and communications in the near future, Chair Jerome Powell said. "Labor Force Participation: Recent Developments and Future Prospects (PDF)," Brookings Papers on Economic Activity, Fall, pp. I would like to start with a review of changes in the Federal Reserve’s balance sheet since March. Moreover, good institutional practice suggests that routine self-evaluation is healthy for any organization. 108 (May, S1), pp. After ten years of economic … Clarida, Richard H. (2019). 113–39. Fed's actions have unlocked almost $2 tln of funding to support businesses, nonprofits, local governments. How Might They Help?" An extensive discussion about how these issues affect the design of monetary policy, as well as the relevant related literature, can be found in Duarte and others (2020), Arias and others (2020), and Hebden and others (2020). The research conference brought together some of the world's leading academic experts to address topics central to our review, and the presentations and robust discussion we engaged in were an important input to our review process.20, 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. The Federal Reserve System's "Conference on Monetary Policy Strategy, Tools, and Communication Practices (A Fed Listens Event)" was hosted by the Federal Reserve Bank of Chicago in June 2019. Return to text, 8. Sumner (1995) gives an extensive analysis of this proposal, including literature review. Washington: Board of Governors of the Federal Reserve System, August. Inflation-targeting central banks generally do not focus solely on inflation: Those with "flexible" inflation targets take into account economic stabilization in addition to their inflation objective. In earlier decades when the Phillips curve was steeper, inflation tended to rise noticeably in response to a strengthening labor market. In other words, they basically lent money to the government to issue stimulus bills. The Black and Hispanic unemployment rates reached record lows, and the differentials between these rates and the white unemployment rate narrowed to their lowest levels on record.14 As we heard repeatedly in our Fed Listens events, the robust job market was delivering life-changing gains for many individuals, families, and communities, particularly at the lower end of the income spectrum.15 In addition, many who had been left behind for too long were finding jobs, benefiting their families and communities, and increasing the productive capacity of our economy. After the Global Financial Crisis, the Fed held the federal funds rate at the lower bound for seven years. The Federal Reserve is completing a yearlong policy review and is expected to announce the results soon. Inflation and Activity—Two Explorations and Their Monetary Policy Implications, Meeting of the Federal Open Market Committee on January 24–25, 2012 (PDF), Federal Reserve to Review Strategies, Tools, and Communication Practices It Uses to Pursue Its Mandate of Maximum Employment and Price Stability, Fed Listens: Perspectives from the Public (PDF), Monetary Policy and Economic Performance since the Financial Crisis, The Federal Reserve's Review of Its Monetary Policy Strategy, Tools, and Communication Practices, Strengthening the FOMC's Framework in View of the Effective Lower Bound and Some Considerations Related to Time-Inconsistent Strategies, Distributional Considerations for Monetary Policy Strategy, Should the Federal Reserve Regularly Evaluate Its Monetary Policy Framework? Fernald (2015) suggests 2003 as a break point for the beginning of the productivity slowdown. After all, low and stable inflation is essential for a well-functioning economy. Goodfriend, Marvin (2007). Households and businesses will come to expect this result, meaning that inflation expectations would tend to move below our inflation goal and pull realized inflation down. The review process featured three key components: On August 27, 2020, the FOMC released a revised Statement on Longer-Run Goals and Monetary Policy Strategy. 2. Consumer price inflation, which was running below 2 percent in the early 1960s, had risen into the double digits by the late 1970s and was slightly above 12 percent when the Committee gathered for an unscheduled meeting in the Eccles Building in Washington, D.C., on a Saturday in October 1979—before the days when transparency was the hallmark of institutional accountability—and decided to change the conduct of monetary policy. It is the size of the balance sheet and composition of liabilities that determine the level of reserves in the banking system, which, in turn, has a meaningful influence on money market rates and policy implementation. Adopted effective January 24, 2012; as amended effective August 27, 2020. In conducting monetary policy, we will remain highly focused on fostering as strong a labor market as possible for the benefit of all Americans. "Opening Remarks: Monetary Policy in a Changing Economy (PDF)." Of course, if excessive inflationary pressures were to build or inflation expectations were to ratchet above levels consistent with our goal, we would not hesitate to act. The Fed has changed its inflation policies for the first time in a decade. Since then, prior to the current pandemic-induced downturn, a series of historically long expansions had been more likely to end with episodes of financial instability, prompting essential efforts to substantially increase the strength and resilience of the financial system.4. Our new consensus statement, like its predecessor, explains how we interpret the mandate Congress has given us and describes the broad framework that we believe will best promote our maximum-employment and price-stability goals. This discussion was informed by. In particular, for a median week in our sample, supervisory data capture over 70 percent of … "Strengthening the FOMC's Framework in View of the Effective Lower Bound and Some Considerations Related to Time-Inconsistent Strategies," Finance and Economics Discussion Series 2020-067. 2019-2020 Review: Overview. We continue to believe that specifying a numerical goal for employment is unwise, because the maximum level of employment is not directly measurable and changes over time for reasons unrelated to monetary policy. Before the Great Moderation, expansions typically ended in overheating and rising inflation. "Alternative Strategies: How Do They Work? For the formalization and development of the concept of flexible inflation targeting, see Svensson (1999) and, more recently, Svensson (2020). Return to text, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue N.W., Washington, DC 20551, Last Update: Return to text, 17. August 27, 2020, Transcripts and other historical materials, Quarterly Report on Federal Reserve Balance Sheet Developments, Community & Regional Financial Institutions, Federal Reserve Supervision and Regulation Report, Federal Financial Institutions Examination Council (FFIEC), Securities Underwriting & Dealing Subsidiaries, Regulation CC (Availability of Funds and Collection of Checks), Regulation II (Debit Card Interchange Fees and Routing), Regulation HH (Financial Market Utilities), Federal Reserve's Key Policies for the Provision of Financial Services, Sponsorship for Priority Telecommunication Services, Supervision & Oversight of Financial Market Infrastructures, International Standards for Financial Market Infrastructures, Payments System Policy Advisory Committee, Finance and Economics Discussion Series (FEDS), International Finance Discussion Papers (IFDP), Estimated Dynamic Optimization (EDO) Model, Aggregate Reserves of Depository Institutions and the Monetary Base - H.3, Assets and Liabilities of Commercial Banks in the U.S. - H.8, Assets and Liabilities of U.S. This rate is not affected by monetary policy but instead is driven by fundamental factors in the economy, including demographics and productivity growth—the same factors that drive potential economic growth.11 The median estimate from FOMC participants of the neutral federal funds rate has fallen by nearly half since early 2012, from 4.25 percent to 2.5 percent (see figure 2). The unemployment rate hovered near 50-year lows for roughly 2 years, well below most estimates of its sustainable level. Our longer-run goal continues to be an inflation rate of 2 percent. In Federal Reserve Bank of Kansas City, ed., Changing Market Structure and Implications for Monetary Policy: A Symposium Sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyo., August 23–25. Return to text, 23. "The Federal Reserve's Review of its Monetary Policy Framework: A Roadmap," FEDS Notes. Return to text, 16. In particular, the neutral level of the federal funds rate (the Fed's policy interest rate)—the level that keeps the economy on an even keel when employment and inflation are close to their objectives—appears to have fallen in the United States and abroad. And we will steadfastly seek to achieve a 2 percent inflation rate over time. Kansas City, Mo. In January 2012, the Committee issued its first Statement on Longer-Run Goals and Monetary Policy Strategy, which we often refer to as the consensus statement. How Might They Help? Return to text, 5. Interview (PDF) by Donald L. Kohn, Lynn S. Fox, and David H. Small (second day of interview), Federal Reserve Board Oral History Project, Board of Governors of the Federal Reserve System. The monetary policies of the Volcker era laid the foundation for the long period of economic stability known as the Great Moderation. "Opening Remarks: Challenges for Monetary Policy (PDF)." Branches and Agencies of Foreign Banks, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks, Senior Loan Officer Opinion Survey on Bank Lending Practices, Structure and Share Data for the U.S. Offices of Foreign Banks, New Security Issues, State and Local Governments, Senior Credit Officer Opinion Survey on Dealer Financing Terms, Statistics Reported by Banks and Other Financial Firms in the United States, Structure and Share Data for U.S. Offices of Foreign Banks, Financial Accounts of the United States - Z.1, Household Debt Service and Financial Obligations Ratios, Survey of Household Economics and Decisionmaking, Industrial Production and Capacity Utilization - G.17, Factors Affecting Reserve Balances - H.4.1, Federal Reserve Community Development Resources, Statement on Longer-Run Goals and Monetary Policy Strategy, Guide to changes in the Statement on Longer-Run Goals and Monetary Policy Strategy, Fed Listens: Perspectives from the Public (PDF), Federal Open Market Committee (FOMC) announces approval of updates to its Statement on Longer-Run Goals and Monetary Policy Strategy, Federal Reserve to review strategies, tools, and communication practices it uses to pursue its mandate of maximum employment and price stability, Statement on Longer-Run Goals and Monetary Policy Strategy (PDF), Federal Reserve Transparency: Rationale and New Initiatives, Federal Reserve's Work Related to Economic Disparities, Finally, the FOMC discussed topics associated with the review at five consecutive meetings beginning in July 2019. Washington: Board of Governors, February. (2017). Volcker, Paul A., and Toyoo Gyohten (1992). Washington: Board of Governors, June. Estimates of the neutral federal funds rate, which is the rate consistent with the economy operating at full strength and with stable inflation, have fallen substantially, in large part reflecting a fall in the equilibrium real interest rate, or "r-star." See the report Fed Listens: Perspectives from the Public (Board of Governors, 2020b), which summarizes the 14 Fed Listens events hosted by the Board and the Federal Reserve Banks during 2019, as well as an additional event in May 2020 to follow up with participants about the effects of the COVID-19 pandemic on their communities. Return to text, 18. The review took the Federal Reserve's statutory mandate as given as well as the FOMC's previously articulated longer-run inflation objective of 2 percent. (PDF)" Brookings Papers on Economic Activity, Fall, pp. 29. Our review has provided a platform for productive discussion and engagement with the public we serve. The Kansas City Fed's Economic Policy Symposiums have consistently served as a vital platform for discussing the most challenging economic issues of the day. See Board of Governors (2012), p. 43. Thus, our approach could be viewed as a flexible form of average inflation targeting.26 Our decisions about appropriate monetary policy will continue to reflect a broad array of considerations and will not be dictated by any formula. Washington: Board of Governors of the Federal Reserve System, August 27. (1999). Washington: Board of Governors of the Federal Reserve System, August 27. Fed advances policy review on ‘very elevated’ uncertainty. See Volcker and Gyohten (1992); also see Volcker (2008), pp. How the Fed’s Policy Review received an incomplete grade Posted by Cam Hui - September 5, 2020 It has been over a week since Jerome Powell’s virtual Jackson Hole speech in which he laid out the Fed’s revised its updates to its Statement on Longer-Run Goals and Monetary Policy Strategy after a long and extensive internal review. See Board of Governors (2018) and Clarida (2019). For a longer-run perspective, see the analysis presented in Aaronson and others (2014). ——— (2020a), Monetary Policy Report (PDF). However, if inflation runs below 2 percent following economic downturns but never moves above 2 percent even when the economy is strong, then, over time, inflation will average less than 2 percent. Nonetheless, I am pleased to say that the revised consensus statement was adopted today with the unanimous support of Committee participants. Before addressing the key changes in our statement, let me highlight some areas of continuity. First, assessments of the potential, or longer-run, growth rate of the economy have declined. David Page, Head of Macro Research at AXA Investment Managers | Federal Reserve Chair Powell delivered the first shared address to a (virtual) Jackson Hole Monetary Conference. "How Robust Are Makeup Strategies to Key Alternative Assumptions?" Judging by the agenda and the papers, this year will be no exception. A clear takeaway from these events was the importance of achieving and sustaining a strong job market, particularly for people from low- and moderate-income communities. Therefore, following periods when inflation has been running below 2 percent, appropriate monetary policy will likely aim to achieve inflation moderately above 2 percent for some time. 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