achieving their stated objectives. i was confident that we could adapt this type of framework to the federal reserve ’ s dual mandate to promote both maximum employment and price stability. indeed, central banks using this framework were already, in practice, often pursuing economic objectives in addition to low and stable inflation – hence the term, “ flexible ” inflation targeting. because the financial crisis and its aftermath naturally occupied so much of policymakers ’ attention, progress toward a more explicit policy framework at the federal reserve was slower than i had hoped. nevertheless, progress was made. in the minutes of its october 2007 meeting, the fomc introduced its quarterly summary of economic projections ( sep ), which included fomc participants ’ projections of key macroeconomic variables such as inflation, gross domestic product ( gdp ) growth, and the unemployment rate. 1 over time, we prior to october 2007, fomc participants provided semiannual projections of nominal and real gdp, unemployment, and core inflation, which were reported in the meeting minutes and in the monetary policy report to the congress. the innovations associated with the introduction of the sep included ( 1 ) the switch bis central bankers ’ speeches added long - run projections of inflation, growth, and unemployment, as well as projections of the path of the target federal funds rate consistent with each individual ’ s views of appropriate monetary policy. these additions have better informed the public about participants ’ views on both the long - run objectives of policy and the path of interest rates most consistent with achieving those objectives. we took another important step in january 2012, when the fomc issued a statement laying out its longer - run goals and policy strategy. 2 the statement established, for the first time, an explicit longer - run goal for inflation of 2 percent, and it pointed to the sep to provide information about committee participants ’ assessments of the longer - run normal unemployment rate, currently between 5. 2 and 6 percent. the statement also indicated that the committee would take a balanced approach to its price stability and employment objectives. we adopted additional measures aimed at clarifying the rationales for our decisions, including my quarterly postmeeting press conference. the increases in policy transparency that were achieved proved valuable during a very difficult period for monetary policy. as it happened, during the crisis and its aftermath the federal reserve ’ s transparency and accountability proved critical in a quite different sphere – namely, in supporting the institution ’ s democratic legitimacy. the federal reserve, like other central banks, wields powerful tools ;

, and i think we and they have been well served by a culture that emphasizes objective, expert analysis ; professionalism ; dedication ; and independence from political influence. whatever the fed may have achieved in recent years reflects the efforts of many people who are committed, individually and collectively, to pursuing the public interest. although the fed undoubtedly will face some difficult challenges in the years ahead, our people and our values make me confident that our institution will meet those challenges successfully. references adrian, tobias, daniel covitz, and nellie liang ( 2013 ). “ financial stability monitoring, ” finance and economics discussion series 2013 – 21. washington : board of governors of the federal reserve system, october. bis central bankers ’ speeches bagehot, walter ( [ 1873 ] 1897 ). lombard street : a description of the money market. new york : charles scribner ’ s sons. bernanke, ben s. ( 2013 ). “ the crisis as a classic financial panic, ” speech delivered at the fourteenth jacques polak annual research conference sponsored by the international monetary fund, washington, november 8. board of governors of the federal reserve system ( 2007a ). “ fomc announces it will increase the frequency and expand the content of economic projections released to the public, ” press release, november 14. — — — ( 2007b ). “ minutes of federal open market committee, october 30 – 31, 2007, ” press release, november 20. — — — ( 2012a ). “ federal reserve issues fomc statement, ” press release, december 12. — — — ( 2012b ). “ federal reserve issues fomc statement of longer - run goals and policy strategy, ” press release, january 25. — — — ( 2013 ). “ federal reserve issues fomc statement, ” press release, december 18. chen, han, vasco curdia, and andrea ferrero ( 2011 ). “ the macroeconomic effects of large - scale asset purchase programs, ” federal reserve bank of new york staff reports 527. new york : federal reserve bank of new york, december. chung, hess, jean - philippe laforte, david reifschneider, and john c. williams ( 2012 ). “ have we underestimated the likelihood and severity of zero lower bound events? “ journal of money, credit and banking, vol. 44 ( february supplement ), pp. 47 – 82. congressional budget office ( 2013 ). estimated impact