for release on delivery 1 : 00 p. m. edt september 1, 2020 bringing the statement on longer - run goals and monetary policy strategy into alignment with longer - run changes in the economy remarks by lael brainard member board of governors of the federal reserve system at “ how the fed will respond to the covid - 19 recession in an era of low rates and low inflation, ” an event hosted by the hutchins center on fiscal and monetary policy at the brookings institution washington, d. c. ( via webcast ) september 1, 2020 i want to thank david wessel for hosting this event. it is an honor to be here with ben bernanke and janet yellen, who pioneered the original statement on longer - run goals and monetary policy strategy in 2012. it is a pleasure to discuss the new statement, unanimously approved by the federal open market committee ( fomc ) last week. 1 by bringing our longer - run goals and strategy into alignment with key longer - run changes in the economy, the new statement will strengthen our support for the recovery. in my view, the new statement breaks important ground and will serve the country well as we respond to the economic repercussions of the covid - 19 crisis. key longer - run changes in the economy three related features of the economy ’ s new normal called for the reassessment of the committee ’ s longer - run goals and strategy. 2 first, the equilibrium interest rate has fallen to low levels, which implies a large decline in how much we can cut interest rates to support the economy. 3 that was abundantly clear in march, when we were able to cut i am grateful to ivan vidangos and john roberts of the federal reserve board for helpful discussions. these remarks represent my own views, which do not necessarily represent those of the federal reserve board or the fomc. see the board ’ s website for the new statement at https : / / www. federalreserve. gov / monetarypolicy / files / fomc _ longerrungoals. pdf. information about the review of monetary policy strategy, tools, and communications is available at https : / / www. federalreserve. gov / monetarypolicy / review - of - monetary - policy - strategy - tools - andcommunications. htm. see jerome h. powell ( 2019 ), “ monetary policy : normalization and the road ahead, ” speech delivered at

benoit cœure : interview in le progres de lyon and ebra newspaper group interview with mr benoit cœure, member of the executive board of the european central bank, conducted by mr frank viart of le progres de lyon and published by ebra newspaper group ( l ’ alsace, les dernieres nouvelles d ’ alsace, le republicain lorrain, l'est republicain, vosges matin, le bien public, le journal de saone - et - loire, le progres de lyon, le dauphine libere and vaucluse matin ) on 11 november 2016. * * * seen from frankfurt, what is your reaction to the election of donald trump? it is certainly a major event. it is not for the ecb to assess the political consequences. but it holds a lesson for europe : in a world where shocks are increasing, europe must keep control of its destiny. for europe to be strong in terms of defence and security, it must have a strong economy. and for the economy to be strong, reforms are needed in every country and the euro area must function better. could the ecb ’ s monetary policy decision in december be influenced by this election result? it is too early to say. in the short term we are closely monitoring the reaction of the financial markets. excessive volatility must be avoided. looking ahead, we will assess the consequences of mr trump ’ s election for the global economy and for the euro area. the recovery in the euro area is strengthening. this was visible following the uk referendum. in france, interest rates are historically low. can this persist in the long term? the ecb ’ s monetary policy will remain very accommodative until inflation is firmly on a path towards 2 %. what other reasons are there, beyond the ecb ’ s decisions, for interest rates being so low? it is because growth is still weak. it is because our economies are less able than in the past to create growth. the ecb must take account of this environment and, to provide effective support to the recovery, we must set our key interest rates at very low or even negative levels. if the european economy regains the ability to sustainably create growth, interest rates will return to levels more favourable to savings. how do you account for the fact that economic growth has remained low in france in 2016? the pace of economic growth is accelerating throughout the euro area and