The New Framework and Maximum Employment An important evolution in our new framework is that the Committee now defines maximum employment as the highest level of employment that does not generate sustained pressures that put the price-stability mandate at risk.
13 As a practical matter, this definition means to me that, when the unemployment rate is elevated relative to my SEP projection of its long-run level and other indicators—such as the prime-age employment-to-population and labor force participation ratios—are depressed relative to recent business cycle peaks, monetary policy should, as before, continue to be calibrated to eliminate such employment shortfalls as long as doing so does not put the pricestability mandate at risk.