The Federal Reserve will re-evaluate how it conducts monetary policy, the central bank announced Thursday.
“With labor market conditions close to maximum employment and inflation near our [two] percent objective, now is a good time to take stock of how we formulate, conduct, and communicate monetary policy,” Fed Chairman Jerome Powell said in a press release.
President Trump has repeatedly criticized the Fed for raising its interest rate target, which the central bank has done after keeping rates historically low following the 2008 global financial crisis.
As part of its process the Fed will host a conference in June, encourage input, and plans to begin a review of how best it can help maximize employment and keep prices stable. At the end of that process, the Fed will issue a report on its findings, though it’s unclear exactly when that might come.
The Fed has long faced reform demands from some in Congress, especially from Republicans critical of the emergency measures it implemented during the crisis. Legislation passed by Republicans in the House of Representatives last year would have overhauled the Fed and changed the way it communicates its monetary policy, but that bill has stalled in the Senate.
