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FOMC Unanimously Approves Updates to Monetary Policy Statement

Michelle Kellett by Michelle Kellett
August 23, 2025
in Markets
A A
FOMC Unanimously Approves Updates to Monetary Policy Statement

© Joshua Woroniecki

On Friday, the Federal Open Market Committee (FOMC) announced a unanimous decision to update its Statement on Longer-Run Goals and Monetary Policy Strategy. This foundational document outlines the Committee’s approach to monetary policy and sets the stage for its future actions.

The revised consensus statement underscores the FOMC’s commitment to achieving the goals of maximum employment and stable prices, in line with its congressional mandate. The Committee aims to foster these objectives across a diverse array of economic conditions, ensuring the overall well-being and prosperity of all Americans.

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Initially adopted in 2012, the framework statement underwent its first public review during 2019-2020, with a subsequent review cycle announced for 2025 in November 2024. The latest updates draw on valuable lessons learned from the economy over the past five years, aiming to improve the transparency, accountability, and overall effectiveness of the monetary policy framework.

As part of the 2025 review process, the FOMC conducted Fed Listens events at various Reserve Banks nationwide, along with a research conference held in May to gather insights from a broad spectrum of stakeholders. Importantly, the Committee’s two percent longer-run inflation goal remained outside the scope of this review.

These updates mark a significant step in the FOMC’s ongoing mission to adapt its strategies in response to the evolving economic landscape, reinforcing its dedication to maintaining a stable and conducive environment for American economic growth.

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