Fed to Review Policy Framework in 2025: 2% Inflation Target Not a Focus

The Fed will launch a policy framework review next year, focusing on its "long-term goals and policy strategies" and communication tools. The 2% inflation target is not under review, which may disappoint academics and analysts.

Internal discussions will begin at January’s FOMC meeting, followed by a May symposium featuring external experts. The previous review in 2020 introduced policies allowing inflation to exceed the target temporarily.