1 By bringing our longer-run goals and strategy into alignment with key longer-run changes in the economy, the new statement will strengthen our support for the recovery. In my view, the new statement breaks important ground and will serve the country well as we respond to the economic repercussions of the COVID-19 crisis.
Key Longer-Run Changes in the Economy Three related features of the economy’s new normal called for the reassessment of the Committee’s longer-run goals and strategy. 2 First, the equilibrium interest rate has fallen to low levels, which implies a large decline in how much we can cut interest rates to support the economy.