MNI: Fed To Keep 2% Inflation Target In Framework Review
MNI (WASHINGTON) - The Federal Reserve will stick to its 2% inflation target as part of its 2025 framework review and focus on the Statement on Longer-Run Goals and Monetary Policy Strategy and its communications tools, according to a statement released Friday.
"The review is focused on two specific areas: the Federal Open Market Committee’s Statement on Longer-Run Goals and Monetary Policy Strategy, which articulates the Committee’s approach to monetary policy; and the Committee’s policy communications tools. The Committee’s two percent longer-run inflation goal will not be a focus of the review," the Fed Board statement said. (See: MNI: Fed Review To Rebalance Inflation Targeting-Ex Officials)
Discussions among policymakers will begin with the January 28-29 FOMC meeting, the statement said, also noting a research conference in May. “We are open to new ideas and critical feedback and will take onboard lessons from the last five years and adapt our approach where appropriate to best serve the American people, to whom we are accountable,” said Fed Chair Jerome Powell in a statement.