forward guidance clearly describes the key elements of the fomc ’ s reaction function to economic developments and a changing outlook. ready to adapt one of the most important, but perhaps overlooked parts of our august announcement is that we will review our longer - run framework roughly every five years. this represents the fed ’ s commitment to transparency and our willingness to continue to adapt to changing circumstances. reviewing our longer - run framework and approach to our goals more frequently will ensure we are well prepared for the future, whatever it may bring. conclusion i ’ ll conclude with this : these are extraordinary times. the announcement of changes to our longer - run framework comes during one of the most challenging periods our country and our economy have ever faced. these changes to the framework mean that we are well positioned to deliver on our dual mandate goals and support a strong and sustained economic recovery. 1 see board of governors of the federal reserve system, statement on longer - run goals and monetary policy strategy, as amended effective august 27, 2020. 2 see board of governors of the federal reserve system, federal reserve issues fomc statement, september 16, 2020. 3 john c. williams, a new chapter for the fomc monetary policy framework, remarks at “ in conversation : new york fed presidents on covid - 19 ” ( bretton woods committee webinar ) ( september 2, 2020 ). 4 thomas m. mertens and john c. williams, “ tying down the anchor : monetary policy rules and the lower bound on interest rates. ” in john h. cochrane and john b. taylor ( eds. ), strategies for monetary policy, hoover institution press, palo alto, ca, 2020. 5 athanasios orphanides and john c. williams, robust monetary policy rules with unknown natural rates, brookings papers on economic activity, 2002, no. 2. 6 see board of governors of the federal reserve system, statement on longer - run goals and monetary policy strategy, as amended effective august 27, 2020. 7 claire kramer mills and jessica battisto, double jeopardy : covid - 19 ’ s concentrated health and wealth effects in black communities, federal reserve bank of new york, august 2020. 8 board of governors of the federal reserve system, federal reserve issues fomc statement, september 16, 2020 ; board of governors of the federal reserve system, transcript of chair powell ’ s press conference, september 16, 2020. 9 board of governors of the federal reserve system, federal reserve issues fom

john c williams : the longer - run framework - a look ahead remarks ( via videoconference ) by mr john c williams, president and chief executive officer of the federal reserve bank of new york, at the hoover institution monetary policy virtual series : the road ahead for central banks, 7 october 2020. * * * it ’ s great to be back in california participating once again in a hoover institution monetary policy event, even if only virtually. these conferences have provided an excellent opportunity for academic experts, policymakers, and practitioners to share research and perspectives on critically important issues. john taylor is both a friend and a mentor, so it ’ s a particular pleasure to be sharing this online platform with him today. this summer, the federal open market committee ( fomc ) completed its review of the fed ’ s monetary policy framework. this culminated in august with the issuance of a new statement on longer - run goals and monetary policy strategy. 1 the fomc put this strategy into practice in its september policy statement, explicitly tying its policy actions and intentions to the new framework. 2 the new policy framework represents a substantial evolution of the fomc ’ s thinking and approach since the committee published its first framework statement in 2012. today, i ’ m going to talk about what these changes mean for policy as the economy recovers from the effects of the pandemic. but what i ’ m really looking forward to is our conversation around these important issues, so i ’ ll keep my opening remarks brief. before i go any further, i need to give the standard fed disclaimer that the views i express today are mine alone and do not necessarily reflect those of the fomc or others in the federal reserve system. our dual mandate goals while our monetary policy approach has shifted, our fundamental goals have not. the fed has two goals set by congress : maximum employment and price stability. these “ dual mandate ” goals remain on an equal footing, and our commitment to delivering on both has not changed. in addition, our assessment that a 2 percent long - run inflation rate is most consistent with achieving both of our dual mandate goals is unaltered. what has evolved is how we think about best achieving them. like all institutions, the federal reserve must be responsive to changing circumstances and adapt to new realities. since 2012, we have learned a great deal about the behavior of the economy, employment, and inflation — both in the short and longer run — and these lessons have informed our approach to