Evans on the Federal Reserve's Dual Mandate
Monetary Policy at the Zero Lower Bound
"Why tie the open-ended asset purchases and the funds rate liftoff to specific economic conditions? Well, doing this clarifies how our policy decisions are conditional on making adequate progress toward our dual mandate goals..."
From a speech delivered on January 14, 2013, at the Asian Financial Forum in Hong Kong, China. Read more...
Monetary Policy in Challenging Times
"I now think a threshold of 6-1/2 percent for the unemployment rate and an inflation safeguard of 2-1/2 percent, measured in terms of the outlook for total PCE (Personal Consumption Expenditures Price Index) inflation over the next two to three years, would be appropriate."
From a speech delivered on November 27, 2012, at the C. D. Howe Institute in Toronto, Canada. Read more...
Perspectives on Current Economic Issues
"[M]ore accommodative policy can deliver a stronger economy and the resiliency we are seeking. Furthermore, appropriate policy can deliver these better outcomes without generating inflation that is significantly higher than the Fed’s long-run goal of 2 percent."
From a speech delivered on September 18, 2012, at the Bank of Ann Arbor Breakfast in Ann Arbor, MI. Read more...
Managing Monetary Policy Risks
"However, in the rare occasion when tension arises between these two goals [of the dual mandate], policy must be formulated with careful consideration of the relative performance of one objective against the other and of the risks to the outlooks for both policy goals."
From a speech delivered on January 11, 2012, at the Lake Forest-Lake Bluff Rotary Regular Meeting in Lake Forest, Illinois. Read more...
A Risk Management Approach to Monetary Policy
"We certainly have experienced inflation rates near 3 percent in the recent past and have weathered them well. And 3 percent won’t unhinge long-run inflation expectations. We are not talking about anything close to the debilitating higher inflation rates we saw in the 1970s or 1980s."
From a speech delivered on December 5, 2011, at the Ball State University Center for Business and Economic Research Outlook Luncheon in Muncie, Indiana. Read more...
The Fed’s Dual Mandate Responsibilities: Maintaining Credibility during a Time of Immense Economic Challenges
"I think we should consider committing to keep short-term rates at zero until either the unemployment rate goes below 7 percent or the outlook for inflation over the medium term goes above 3 percent."
From a speech delivered on October 17, 2011 at the Michigan Council on Economic Education, Michigan Economic Dinner in Detroit, Michigan. Read more...
The Fed's Dual Mandate Responsibilities and Challenges Facing U.S. Monetary Policy
"The bottom line is that a conservative and tough-minded central banker can still value deviations in unemployment from the natural rate equally with deviations in inflation from its target."
From a speech delivered on September 7, 2011 at the European Economics and Financial Centre in London, United Kingdom. Read more...
Making Sense of Monetary Policy
"Slow progress in closing resource gaps and a medium-term outlook for inflation that is too low lead me to conclude that substantial policy accommodation continues to be appropriate. This accommodative policy will foster a return of economic conditions consistent with our dual mandate."
From a speech delivered on May 19, 2011, to the Global Corporate Treasurer Forum in Chicago, Illinois. Read more...
Monetary Policy: Slow Progress toward Our Goals
"To put it bluntly, with unemployment too high and inflation too low — and both forecasted to stay that way over the next two years — we have missed on both of our policy objectives. There is currently no policy conflict between improving the employment and inflation outcomes."
From a speech delivered on February 17, 2011, to the 2011 Rockford Chamber of Commerce Economic Outlook Luncheon in Rockford, Ill. Read more...
