Vice Chair Richard H. Clarida of the Federal Reserve Board presented “The Federal Reserve's New Framework: Context and Consequences” at the "The Road Ahead for Central Banks" section of the seminar series sponsored by the Hoover Economic Policy Working Group, Hoover Institution, Stanford University. A wide range of questions were asked and comments were offered by the 150 members of the Zoom audience, including charts presented by David Papell of the University of Houston and also by Robert Hall of the Hoover Institution. John Taylor, the Mary and Robert Raymond Professor of Economics at Stanford University and the George P. Shultz Senior Fellow at the Hoover Institution, was the moderator.
PARTICIPANTS
Richard Clarida, John Taylor, Joao Marcelo Amaral, Richard Anderson, Jaclyn Anderson, Marco Azevedo, David Bailey, James Berberich, Russell Berman, Michael Bernstam, Justin Berrie, Steven Blitz, Hayley Boesky, Valentin Bolotnyy, Michael Bordo, Rob Brown, Alister Bull, Daniele Caratelli, Ben Carliner, Jake Carney, Andressa Castro, Jimmy Chang, Varadarajan Chari, Brian Cheung, Pedro Chrysotomo, John Cochrane, Gunter Coenen, Chris Collins, Michael Connolly, Thomas Cooley, Gabriel Costa, Chris Crowe, Sarah Delahunty, Michael Derby, Randi Dewitty, Juhi Dhawan, Sami Diaf, Katrina Dudley, Darrell Duffie, Burcu Duygan-Bump, Sebastian Edwards, Alejandra Edwards, Christopher Erceg, David Fedor, Peter Fisher, Jared Franz, Rodrigo Galindo, Conrado Garcia, Lucas Geraldes, Nicolas Goetzmann, Lawrence Goodman, Yuriy Gorodnichenko, Paul Gregory, Jonathan Grössl, Krishna Guha, Victoria Guida, John Gunn, Robert Hall, James Hamilton, Derek Hamilton, Beth Hammack, Daniel Heil, Thomas Helbling, Robert Heller, Robert Hodrick, Michael Hutchison, Jane Ihrig, Peter Ireland, Otmar Issing, Brian Jia, Ken Judd, Greg Kaldor, Marc Katz, Patrick Kehoe, Taylor Kendall, Robert King, Alissa Kleinnijenhuis, Kevin Kliesen, Evan Koenig, Jeffrey Lacker, William Lee, Aaron Lemner, Mickey Levy, Steve Liesman, John Lipsky, Dennis Lockhart, Tony Mace, Brian Madigan, Peter Maletis, Lilia Maliar, Dante Mangiaracina, Ken Matheny, Ellen Meade, David Mericle, Axel Merk, Scott Millar, Rich Miller, David Mulford, Koji Nakamura, Edward Nelson, Laura Nicolae, Kana Norimoto, Athanasios Orphanides, Keiichiro Otsuka, Terence Pagano, David Papell, Elena Pastorino, Joe Pavel, Paul Peterson, Monika Piazzesi, Jonathan Pingle, Charles Plosser, Luiz Eduardo Portella, John Raisian, Roiana Reid, Samuel Reynard, Gregory Robb, Polo Rocha, Evan Ryser, Brian Sack, Ann Saphir, George Selgin, Omair Sharif, Paul Schmelzing, Howard Schneider, Allison Schrager, Chiara Scotti, Kathryn Shaw, George Shultz, Rachel Siegel, Charles Siguler, Pierre Siklos, Torsten Slok, Brian Smedley, Jeanna Smialek, John Smyth, Thomas Stephenson, Christine Strong, Bernard Tamler, Derek Tang, Zachary Tashman, Yevgeniy Teryoshin, Daniel Tonholo, Harald Uhlig, Tomas Urani, Jose Ursua, John Valentino, Jim Van Horne, Sanjay Verma, Annette Vissing-Jorgensen, Carl Walsh, Sarah Wolfe
ISSUES DISCUSSED
Vice Chair Richard Clarida discussed the background that went into the change in monetary policy announced in the revised Statement on Longer-Run Goals and Monetary Policy Strategy issued by the Federal Open Market Committee (FOMC) in August 2020, and he showed how it was a robust evolution of the Fed’s previous monetary policy framework. He also discussed the September 2020 and December 2020 FOMC meetings at which the FOMC made material changes to its forward guidance to make it line up with the new policy framework. He discussed the new policy framework in detail and its policy implications, and he provided background on the reasons the FOMC felt a new framework was needed.
To read the paper by Richard Clarida, click here.
Background material provided to participants prior to Richard Clarida’s talk include an earlier paper by Clarida, questions and answers about that paper, and an IHSMarkit analysis of that paper.
Charts presented during the questions and answer period are here by David Papell and here by Robert Hall.
