Jerome H Powell: Opening remarks – "Second Thomas Laubach Research Conference" 

Opening remarks by Mr Jerome H Powell, Chair of the Board of Governors of the Federal Reserve System, at the Second Thomas Laubach Research Conference, hosted by the Federal Reserve Board, Washington DC, 15 May 2025.

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

Good morning. I am pleased to welcome everyone here today. Thomas Laubach's research and support of the Federal Open Market Committee (FOMC) helped us better understand monetary policy, and it is fitting that this work will continue today in his name. Thank you to the authors of the papers, to the discussants, and to our panel participants. Thank you also to Trevor and his team for organizing this conference; a lot of work went into bringing us together.

As in our last review, the 2025 review consists of three key elements: this conference, Fed Listens events at Reserve Banks around the country, and policymaker discussions and deliberations, supported by staff analysis, at a series of FOMC meetings. In the current review we will reconsider aspects of our strategic framework in light of the experience of the last five years. We will also consider possible enhancements to the Committee's policy communication tools, regarding forecasts, uncertainty, and risks.

The Consensus Statement

In 2012, the FOMC first codified our monetary policy framework in a document entitled the Statement on Longer-Run Goals and Monetary Policy Strategy, which we refer to as the consensus statement. The language in the opening paragraph, which has never changed, articulates our commitment to fulfilling our congressional mandate and to explaining clearly what we are doing and why. That clarity reduces uncertainty, improves the effectiveness of our policy, and enhances transparency and accountability.