Fed Chair Powell: Our policy actions depend on the economic outlook and the risks to that outlook

Monetary Policy Framework - The policy decisions are guided by principles that consider deviations from goals and varying time horizons for achieving the dual mandate of maximum employment and price stability [1] - Monetary policy is forward-looking, considering the time lags in its effects on the economy, thus policy actions depend on the economic outlook and balance of risks [2] - Setting a numerical goal for employment is considered unwise because the maximum level of employment is not directly measurable and changes over time for reasons unrelated to monetary policy [3] - A longer-run inflation rate of 2% is viewed as most consistent with the dual mandate goals, and commitment to this target helps keep longer-term inflation expectations well anchored [3] Inflation Target - Experience has shown that 2% inflation is low enough to ensure that inflation is not a concern in household and business decision-making while also providing a central bank with some policy flexibility to provide accommodation during economic downturns [4] Review Cycle - The consensus statement retained a commitment to conduct a public review roughly every 5 years to reassess structural features of the economy and engage with the public, practitioners, and academics on the performance of the framework [4][5]