BWC Chair William C. Dudley recently chaired a new report from the Group of Thirty examining the Federal Reserve’s monetary policy framework in the context of the Fed’s ongoing 2025 review. The report’s central argument is that central bank independence — a cornerstone of long-term economic stability and lower inflation — must be actively maintained through accountability, credibility, and public trust. While the 2025 review produced important progress, most notably the Fed’s return to a symmetric 2% inflation target and the abandonment of flexible average inflation targeting (FAIT), the G30 report argues that more remains to be done.

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In a new Bloomberg article, Dudley outlines key recommendations form the report for the path forward under Fed Chair Kevin Warsh, translating the report’s findings into concrete steps for the new regime. Key recommendations include establishing a clear framework for quantitative easing and tightening, a reassessment of the size and structure of the Fed’s balance sheet, and publishing detailed staff forecasts better linked to policy decisions. He also calls for limiting forward guidance to periods when interest rates are near zero, clearer delineation of roles between the Federal Reserve and the U.S. Treasury, and an external review of the Fed’s policy framework and operations.

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The G30 also hosted a virtual webinar to mark the report’s release. You can watch the full webinar below:

All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.