It has become more transparent regarding the Committee’s economic outlook over both the short and the intermediate term through the publication of its Summary of Economic Projections, or SEP for short, which is published four times a year. All of these efforts have moved us closer to having an explicit monetary policy framework.
Of course, such a framework does not solve all of our difficult policy choices. A good deal of judgment needs to be used in setting appropriate monetary policy. Still, having an explicit framework within which to consider our policy choices in a systematic way would improve monetary policy’s effectiveness in meeting our mandated objectives while increasing transparency and accountability.