[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-324158-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-324158-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","a-perspective-on-monetary-policy-brief-remarks","A Perspective on Monetary Policy - Brief Remarks","","Remarks on monetary policy goals and how the Federal Open Market Committee sets them, emphasizing maximum employment, stable prices, and moderate long-term interest rates. Explains why the Committee’s operational approach relies on indicators such as the core PCE inflation measure and the concept of supporting GDP growth near potential. Describes the federal funds rate as the primary tool, detailing how targeting it transmits through other interest rates, credit, and broader economic outcomes. Includes the current path of rate increases and the focus on inflation risks during normalization.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/a-perspective-on-monetary-policy-brief-remarks/324158/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/a-perspective-on-monetary-policy-brief-remarks/324158.png","ImageObject",300,407,{"name":42,"@type":43},"Levi","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-02","2026-09-21",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",7,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What does the speaker say are the FOMC’s main monetary policy goals?","Question",{"text":63,"@type":64},"The speaker highlights maximum employment, stable prices, and moderate long-term interest rates as the goals Congress requires the FOMC to promote.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"How does the FOMC make the price stability goal operational?",{"text":68,"@type":64},"The remarks state that the FOMC tends to focus on the growth rate of the core PCE price index, excluding food and energy components.",{"name":70,"@type":61,"acceptedAnswer":71},"How does the federal funds rate influence the broader economy?",{"text":72,"@type":64},"By targeting a specific federal funds rate, the FOMC affects other interest rates and bank lending quantities; these changes then influence employment, output, and goods and services prices.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},324158,1790149346,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,101,106,110,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & 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gettingout to various communities within ourregion on a regular basis to talk withbusiness people—to hear what's on theirminds and where they think the regionaleconomy is heading.It is important tobring that regional input with me in myrole as national monetary policymaker.  \nIhave just completed my second year onthe Federal Open Market Committee,orFOMC,which is the Federal Reserve'smonctary policymaking group.We meeteight times a year in Washington,D.C.The voting members of the FOMCinclude the seven members of the Boardof Govenors of the Federal ReserveSystem,the president of the FederalReserve Bank of New York,and four ofthe other eleven Reserve Bank presi-dents.All of the presidents participate inthe policy discussions,but my votingresponsibility on the FOMC alternateseach year with the president of the Fed-eral Reserve Bank of Chicago.In 2004,I had a vote,and this year MichaelMoskow,the Chicago president,voteson FOMC policy actions.  \nAnd that brings me to what I would liketo cover in my remarks to you today—abrief perspective on monetary policy.First,I will describe the FOMC's goalsin setting monetary policyNextI willtalk about why we are moving the fed-eral funds rate up from exceptionallylow levels.Finally,I will explain why,aswe adjust to a more normal economicenvironment,we need to pay close atten-tion to the risks for higher inflation.  \n# A Perspective on Monetary Policy\n\nThe views that l express today are minealone.I do not presume to speak for anyof my FOMC colleagues.  \n## ■ Monetary Policy Goals\n\nLet me begin by telling you that con-ducting monetary policy is more com-plex than it might appear at first glance.Economic conditions can be unpre-dictable,so we need to find out whichpolicy choices have the best chance ofmoving us toward our goals,given thechanging environment around us.  \nThrough the Federal Reserve Act,Con-gress has instructed the Federal Reserveto conduct monetary policy in support ofthe nation's economic goals.Specifi-cally,Congress requires the FOMC“topromote effectively the goals of maxi-mum employment,stable prices,andmoderate long-term interest rates.\"Inour press releases,we refer to theserequirements in shorthand as \"price sta-bility and sustainable growth.\"  \nYou will notice that there are no precisenumerical definitions here.Even so,ifwewant to be successful in realizingthese goals,we have to make them moreconcrete for operational purposes  \nFor the price stability goal,the FOMCtends to focus on the growth rate of thecore Personal Consumption Expenditureprice index,or PCE price index.Thecore PCE price index is a measure ofaverage consumer prices,excluding thefood and energy components,whichtend to fluctuate quite alot.It appearsthat the core PCE price index will comein at about I'z percent for 2004,andmost forecasters suggest that pace willcontinue in 2005.Inflation aroundI'2percent,if sustained,appears close  \nFebruary 1,2005  \nThis Commentary contains aninsider's view of the decisionmakingprocess followed by the monetarypolicymakers of the FOMC.In par-ticular,Sandra Pianalto,presidentand CEO of the Federal ReserveBank of Cleveland and a member ofthe FOMC,deseribes her take on theobjectives,principles,and economicevents that have played a role in theCommittee's decisions since lastJune,when it made the first of aseries of interest rate increases.These remarks were originally madeto the Association for CorporateGrowth in Pittsburgh,Pennsylvania,on January 18,2005.  \nto what several countries have chosen astheir working deinition of price stability,  \nFor the sustainable growth goal,theapproach is not quite as precise.The gen-eral idea is that monetary policy shoulddo what it can to support the expansionof gross domestic product,or GDP,nearits \"potential.\"The tricky part is that theeconomy's potential growth rate canchange over time.Some changes aretemporary—such as when we have oilprice shocks.But so","cbCaicMeBkryGcfS","https://ap.wps.com/l/cbCaicMeBkryGcfS","pdf",1033169,"English","# A Perspective on Monetary Policy\n## Monetary Policy Goals\n## Moving from Unusual Levels of Policy Accommodation","[{\"question\":\"What does the speaker say are the FOMC’s main monetary policy goals?\",\"answer\":\"The speaker highlights maximum employment, stable prices, and moderate long-term interest rates as the goals Congress requires the FOMC to promote.\"},{\"question\":\"How does the FOMC make the price stability goal operational?\",\"answer\":\"The remarks state that the FOMC tends to focus on the growth rate of the core PCE price index, excluding food and energy components.\"},{\"question\":\"How does the federal funds rate influence the broader economy?\",\"answer\":\"By targeting a specific federal funds rate, the FOMC affects other interest rates and bank lending quantities; these changes then influence employment, output, and goods and services prices.\"}]","A Perspective on Monetary Policy - Brief Remarks | PDF",1789967183,13]