6  BIS central bankers’ speeches  Implications of labor market developments for monetary policy The focus of my remarks to this point has been on the functioning of the labor market and how cyclical and structural influences have complicated the task of determining the state of the economy relative to the FOMC’s objective of maximum employment.
In my remaining time, I will turn to the special challenges that these difficulties in assessing the labor market pose for evaluating the appropriate stance of monetary policy. Any discussion of appropriate monetary policy must be framed by the Federal Reserve’s dual mandate to promote maximum employment and price stability.