The Federal Reserve is also working to develop better ways to measure the effectiveness of the lending guidance we have issued. After all, if these sorts of issuances don’t work, we need to know that so we can figure out a better way to get our messages across.
This rich set of perspectives is helping bring alive for us the importance of the review of our monetary policy strategy, tools, and communication practices led by Vice Chair Richard Clarida. We have heard that maximum employment is not captured in a single national average, it brings vital benefits, and it takes a very long time to arrive in many neighborhoods.