Lael Brainard: Full Employment in the New Monetary Policy Framework

Remarks (via webcast) by Ms Lael Brainard, Member of the Board of Governors of the Federal Reserve System, at the Inaugural Mike McCracken Lecture on Full Employment Sponsored by the Canadian Association for Business Economics, 13 January 2021.

The views expressed in this speech are those of the speaker and not the view of the BIS.

I want to thank the Canadian Association for Business Economics for inviting me to join you today, particularly president Bonnie Lemcke and past president Armine Yalnizyan. It is a pleasure to be here with Carolyn Wilkins.

I am honored to deliver the inaugural Mike McCracken Lecture on Full Employment. Widely known for his critical contributions in bringing computer modeling to Canadian economic forecasting, Mike McCracken is perhaps best known for his tireless advocacy that "lower unemployment remains the most important goal for the economy," which is particularly resonant for me, along with his emphasis on thinking critically and expansively about full employment. A similar theme was highlighted by community and labor representatives as well as educators at our Fed Listens events, and it is now reflected in the Federal Reserve's new monetary policy framework.