In addition, see Lael Brainard (2020), “Bringing the Statement on Longer-Run Goals and Monetary Policy Strategy into Alignment with Longer-Run Changes in the Economy,” speech delivered at “How the Fed Will Respond to the COVID-19 Recession in an Era of Low 12  -9below 2 percent, and the low responsiveness of inflation to resource slack embodied in a flat Phillips curve reduces the amount we can cut rates to buffer the economy, weakens inflation expectations, and could lead to worse employment and inflation outcomes over time.
Consequently, it is important to strengthen our ability to achieve our employment and inflation goals by committing to a path of policy and lowering borrowing costs along the yield curve. The new statement on goals and strategy makes several key changes that should significantly improve the way the Committee conducts monetary policy.