Globalization
The Fed Listens: Transforming the Monetary Policy Framework
The U.S. Federal Reserve reviewed its monetary policy framework in 2025, removing the concept of flexible average inflation targeting and adopting a flexible inflation targeting approach. Powell presented this new approach in Jackson Hole, adjusting terms such as “shortfalls” and “broad and inclusive maximum employment goal”. Now, the Fed seeks to achieve full employment in a sustained manner in a context of price stability.
August 28, 2025