In addition, the Committee adopted a statement in 2012 concerning its longer-run goals and monetary policy strategy that included a specific 2 percent longer-run objective for inflation and a commitment to follow a balanced approach in pursuing our mandated goals. Transparency concerning the Federal Reserve’s conduct of monetary policy is desirable because better public understanding enhances the effectiveness of policy.
More important, however, is that transparent communications reflect the Federal Reserve’s commitment to accountability within our democratic system of government. Our various communications tools are important means of implementing monetary policy and have many technical elements. Each step forward in our communications practices has been taken with the goal of enhancing the effectiveness of monetary policy and avoiding unintended consequences.