monetary policy, ” a symposium sponsored by the federal reserve bank of kansas city, held in jackson hole, wyo. ( via webcast ), august 27. 7 see richard h. clarida ( 2020 ), “ the federal reserve ’ s new monetary policy framework : a robust evolution, ” speech delivered at the peterson institute for international economics, washington ( via webcast ), august 31 ; and richard h. clarida ( 2020 ), “ the federal reserve ’ s new framework : context and consequences, ” speech delivered at “ the economy and monetary policy, ” an event hosted by the hutchins center on fiscal and monetary policy at the brookings institution, washington ( via webcast ), november 16. 3 / 3 bis central bankers'speeches

##ed aggregate demand, with the most pronounced effects on interest rate – sensitive sectors. for example, in 2023, the level of residential investment was about 19 percent below its 2021 level, reflecting a much lower pace of home purchases. and business investment in machines has seen somewhat tepid growth lately, even contracting a bit last year, though i note that the construction of new factories has been surging, perhaps partly related to recent legislation, which will boost supply over the longer run. more broadly, financial conditions have been a drag on aggregate demand, as suggested by the federal reserve board's fci - g ( financial conditions impulse on growth ) index, which estimates the overall effect on gross domestic product ( gdp ) of changes in financial conditions, including interest rates, asset prices, and exchange rates. this measure moved well into restrictive territory in 3 / 6 bis - central bankers'speeches mid - 2022 and remained quite restrictive for some time, though it has become less restrictive recently. in addition to the direct actions taken to tighten monetary policy, the fomc has also helped cool inflation through its communication with the public. in particular, the fomc's stated commitment to bring inflation back to 2 percent, coupled with its actions to tighten policy, has helped ensure that longer - term inflation expectations remain anchored - that is, that households and firms believe that inflation will return to the committee's target. anchored expectations are evident in surveys of consumers conducted by the university of michigan and the new york fed. separately, a richmond fed survey shows a close relation between firms'expectations of overall inflation and their own price - setting plans. as the effects of earlier supply and demand shocks fade, firms with anchored inflation expectations will bring their price - setting decisions back into alignment with the fomc's inflation target. one way they might do so is by adjusting their prices less frequently. before the pandemic, the typical price lasted more than 10 months, but by early 2022, it was lasting fewer than 5 months while inflation was near its recent peak. since then, the frequency of price adjustments has slowed considerably, and by the fourth quarter of last year, the typical price was lasting more than 7 months. 8 let me now turn to the outlook for this year. given my thinking about the role of supply and demand in recent inflation dynamics, as well as the role anchored inflation expectations are playing in bringing price - setting behavior back to normal, i expect the disinflationary