Federal Reserve chair holds rates, names five task forces to review communications, data and inflation frameworks
June 17, 2026 | Federal Reserve System, Independent Establishments and Government Corporations, Executive, Federal
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The Federal Reserve chair said the Federal Open Market Committee decided to maintain the target range for the federal funds rate at 3.5% to 3.75% and announced five internal task forces to review the Fed's approach to communications, balance-sheet policy, data, productivity and jobs (including artificial intelligence), and its inflation frameworks.
The move came at a press conference in which the chair said the committee's objectives remain price stability and maximum employment and that committee members were "unambiguous and unanimous" in their commitment to deliver price stability. "This committee will deliver price stability," the chair said in opening remarks, adding that the recent policy statement is "a bit shorter, a bit simpler" and drops older forward-guidance language.
Why it matters: The announcement signals an internal review aimed at reshaping how the Fed explains policy and at what information it relies on. The chair said the communications task force will examine guidance tools such as the dot plot and press conferences; the data task force will explore newer, more real-time sources and methods to reduce reliance on data series that are subject to large revisions; and the balance-sheet task force will assess the implications of the current ample-reserves regime.
What the Fed released: The chair referenced the committee's Summary of Economic Projections (SEPs), saying the median participant projections show real GDP growth near 2.2% over the medium term (about 2.0% this year and 2.3% next year), median total PCE inflation around 3.6% this year and 2.3% next year, and a median unemployment rate near 4.3%. He said he did not submit his own projections.
On the 2% target: Asked whether the inflation-framework review would reconsider the Fed's long-standing 2% objective, the chair said the 2% objective remains the committee's goal and that revisiting that target is outside the scope of the current review "until we have reestablished our commitment and ability to deliver on the 2% inflation objective." The chair added that the committee's discussion included differences of view but ended with a unanimous commitment to the objective.
On forward guidance and market signals: Reporters asked whether dropping explicit forward guidance would increase market volatility. The chair said he favors markets that react to incoming data and described market prices as a key information source for policymakers. He said he did not submit a dot in the dot-plot exercise and described many colleagues' submissions as tentative; the communications review will consider the future role of dots and press conferences.
On data and real-time information: The chair said the data task force will consider private-sector real-time indicators and methodological improvements to make official statistics more contemporaneous and actionable for policy decisions. "We need to take those error bounds down because we have to make hard decisions in real time," he said.
Next steps: The chair said the task forces will begin work in the coming weeks, with framing in the fall and an expectation that most — if not all — will conclude work by year-end, though timelines depend on each task force's charge and urgency. The committee will meet again in six weeks and said it will continue to solicit SEPs from participants while communications reforms are considered.
The chair also said he has met with the inspector general about building renovation projects and expects an inspector general report later this summer; he emphasized stewardship of taxpayer funds.
The press conference included an extended question-and-answer session on inflation drivers, how restrictive current policy might be across different sectors of the economy, and the implications of rapid productivity and AI-driven change. The chair said the productivity and jobs task force will study general-purpose technologies, including AI, to assess timing and implications for output and employment.
The FOMC did not announce a change in the policy rate; it maintained the target range announced at the meeting and reaffirmed a policy of maintaining ample reserves in the banking system.
The move came at a press conference in which the chair said the committee's objectives remain price stability and maximum employment and that committee members were "unambiguous and unanimous" in their commitment to deliver price stability. "This committee will deliver price stability," the chair said in opening remarks, adding that the recent policy statement is "a bit shorter, a bit simpler" and drops older forward-guidance language.
Why it matters: The announcement signals an internal review aimed at reshaping how the Fed explains policy and at what information it relies on. The chair said the communications task force will examine guidance tools such as the dot plot and press conferences; the data task force will explore newer, more real-time sources and methods to reduce reliance on data series that are subject to large revisions; and the balance-sheet task force will assess the implications of the current ample-reserves regime.
What the Fed released: The chair referenced the committee's Summary of Economic Projections (SEPs), saying the median participant projections show real GDP growth near 2.2% over the medium term (about 2.0% this year and 2.3% next year), median total PCE inflation around 3.6% this year and 2.3% next year, and a median unemployment rate near 4.3%. He said he did not submit his own projections.
On the 2% target: Asked whether the inflation-framework review would reconsider the Fed's long-standing 2% objective, the chair said the 2% objective remains the committee's goal and that revisiting that target is outside the scope of the current review "until we have reestablished our commitment and ability to deliver on the 2% inflation objective." The chair added that the committee's discussion included differences of view but ended with a unanimous commitment to the objective.
On forward guidance and market signals: Reporters asked whether dropping explicit forward guidance would increase market volatility. The chair said he favors markets that react to incoming data and described market prices as a key information source for policymakers. He said he did not submit a dot in the dot-plot exercise and described many colleagues' submissions as tentative; the communications review will consider the future role of dots and press conferences.
On data and real-time information: The chair said the data task force will consider private-sector real-time indicators and methodological improvements to make official statistics more contemporaneous and actionable for policy decisions. "We need to take those error bounds down because we have to make hard decisions in real time," he said.
Next steps: The chair said the task forces will begin work in the coming weeks, with framing in the fall and an expectation that most — if not all — will conclude work by year-end, though timelines depend on each task force's charge and urgency. The committee will meet again in six weeks and said it will continue to solicit SEPs from participants while communications reforms are considered.
The chair also said he has met with the inspector general about building renovation projects and expects an inspector general report later this summer; he emphasized stewardship of taxpayer funds.
The press conference included an extended question-and-answer session on inflation drivers, how restrictive current policy might be across different sectors of the economy, and the implications of rapid productivity and AI-driven change. The chair said the productivity and jobs task force will study general-purpose technologies, including AI, to assess timing and implications for output and employment.
The FOMC did not announce a change in the policy rate; it maintained the target range announced at the meeting and reaffirmed a policy of maintaining ample reserves in the banking system.
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