00:00Keeping longer-run inflation expectations anchored was a driving force behind establishing the 2% target in the 2012 framework.
00:08Maintaining that anchor was a major consideration behind the changes in 2020.
00:12Anchored expectations are critical to everything we do, and we remain fully committed to the 2% target today.
00:18In the current review, the committee is engaged in discussions about what we have learned from the experience of the past five years.
00:25We plan to complete consideration of specific changes to the consensus statement in coming months.
00:31We're paying particular attention to the 2020 changes as we consider discrete but important updates reflecting what we have learned about the economy and the way those changes were interpreted by the public.
00:42In our discussion so far, participants have indicated that they thought it would be appropriate to reconsider the language around shortfalls.
00:49And at our meeting last week, we had a similar take on average inflation targeting.
00:53We will ensure that our new consensus statement is robust to a wide range of economic environments and developments.
01:00In addition to revising the consensus statement, we will also consider potential enhancements to our formal policy communications, particularly regarding the role of forecasts and uncertainty.
01:12As we have been reviewing assessments of the 2020 framework and of policy decisions in recent years,
01:16a common observation is the need for clear communications as complex events unfold.
01:23While academics and market participants generally have viewed the FOMC communications as effective, there is always room for improvement.
01:30Indeed, clear communication is an issue even in relatively placid times.
01:35A critical question is how to foster a broader understanding of the uncertainty that the economy generally faces.
01:40In periods with larger, more frequent, or more disparate shocks, effective communication requires that we convey the uncertainty that surrounds our understanding of the economy and the outlook.
01:52We will examine ways to improve along that dimension as we move forward.
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