Richard H Clarida: The Federal Reserve's review of its monetary policy strategy, tools, and communication practices

Speech by Mr Richard H Clarida, Vice Chairman of the Board of Governors of the Federal Reserve System, at "A Hot Economy: Sustainability and Trade-Offs," a Fed Listens event sponsored by the Federal Reserve Bank of San Francisco, San Francisco, California, 26 September 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

I am delighted to be in San Francisco today to participate in this Fed Listens conference, "A Hot Economy: Sustainability and Trade-Offs," which is one of a series of events associated with the Federal Reserve's 2019 review of our monetary policy strategy, tools, and communication practices.

Motivation for the Review

Although I will have more to say about the review in a moment, let me state at the outset that we believe our existing framework, which has been in place since 2012, has served us well and has enabled us to achieve and sustain our statutorily assigned goals of maximum employment and price stability. However, we also believe now is a good time to step back and assess whether, and in what possible ways, we can refine our strategy, tools, and communication practices to achieve and maintain our goals as consistently and robustly as possible.