Board of Governors of the Federal Reserve System

Preface

Congress founded the Federal Reserve System (System) in 1913 as the central bank of the United States. While established as an independent central bank, it is subject to oversight by the Congress and must work within the framework of the overall objectives of economic and financial policy established by its enabling statutes. Over time, the Congress has expanded the Federal Reserve's role in the economy and the financial system, as reflected in its mission:

As the nation's central bank, the fundamental mission of the Federal Reserve System is to foster the stability, integrity, and efficiency of the nation's monetary, financial, and payment systems and to promote optimal economic performance.

As the governing body of the System, the Board of Governors (Board) guides the operations of the System to promote the goals and fulfill the responsibilities given to the Federal Reserve by the Federal Reserve Act. The Board conducts research, analysis, and policymaking related to domestic and international financial and economic matters; supervises and regulates certain U.S. financial institutions and activities; oversees the operations and activities of the Federal Reserve Banks, including important aspects of the nation's payments system; and plays an important role in promoting consumer protection, fair lending, and community development. The mission and activities of the Board are grounded in its institutional values:

Public interest. In its actions and policies, the Board seeks to promote the public interest. It is accountable to the general public and the Congress.

Integrity. The Board adheres to the highest standards of integrity in its dealings with the public, the U.S. government, the financial community, and its employees.

Excellence. The conduct of monetary policy, responsibility for supervision, and maintenance of the payment system demand high-quality analysis; high performance standards; and a secure, robust infrastructure. The pursuit of excellence drives the Board's policies concerning recruitment, selection, and retention of employees.

Efficiency and effectiveness. In carrying out its functions, the Board recognizes its obligation to manage resources efficiently and effectively on behalf of the U.S. taxpayer.

Independence of views. The Board values the diversity of its employees, input from a variety of sources, and the independent professional judgment fostered by the System's regional structure. It relies on strong teamwork and consensus building to mold independent viewpoints into coherent, effective policies.

Additional information on the Board and the System can be found in its Purposes & Functions document (https://www.federalreserve.gov/aboutthefed/pf.htm) and throughout its public website (https://www.federalreserve.gov/faqs.htm).

Introduction

The Board of Governors of the Federal Reserve System's (Board) Strategic Plan 2020–23 (Plan) identifies and frames the organization's strategic goals and objectives.¹ On December 27, 2019, the Board published its Plan, which outlines the organization's priorities within five functional areas for maintaining the stability, integrity, and efficiency of the nation's monetary, financial, and payment systems:

• Monetary Policy and Financial Stability
• Supervision
• Payment System and Reserve Bank Oversight
• Public Engagement and Community Development
• Mission Enablement

The Board continuously seeks to understand changes in the economic and financial environment and how these changes may impact policy decisions. Additionally, the Board monitors changes in the financial services industry, including the influence of advances in technology, to execute its supervisory and regulatory responsibilities.

The Board's work has become increasingly complex, with growing responsibilities and skill requirements, resulting in a need for enhanced capabilities in operational areas such as data, information and cybersecurity, technology, and workforce planning. To ensure the Federal Reserve System (System) remains an effective steward of public resources, the Board is committed to pursuing additional efficiencies in its operations, as well as the operations throughout the Reserve Banks.

The planning process allows the Board to continuously develop and evaluate how to best prioritize initiatives and investments and then allocate resources in support of strategic objectives. The Board recognizes that there are differences between government and private-sector strategic planning and measurement of those efforts. While private-sector planning often relies on measures of revenue, the Board measures its performance relative to public policy objectives and statutory responsibilities.

This document sets forth the planned projects and initiatives that will contribute to furthering the Federal Reserve's mission and strategic goals and objectives. However, given the large scope of work performed by the Board, not all activities are identified within this document. As necessary, the Board's senior leadership will reassess priorities throughout the performance period and adjust the specific activities to achieve strategic objectives. Specifically, while finalizing the Plan, the coronavirus pandemic began causing tremendous hardship across the United States and around the world. The Federal Reserve is committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time. As it has done in the past, the Federal Reserve will adjust its priorities and resources to meet the needs of the changing environment to best fulfill its mandate from Congress to promote maximum employment and stable prices, along with its responsibilities to promote the stability of the financial system. The Board will release a report to the public on its performance toward achieving its 2020 objectives.

The Board issues these reports in the spirit of the Government Performance and Results Act (GPRA) of 1993, which requires that federal agencies prepare a strategic plan covering a multiyear period and submit an annual performance plan and an annual performance report. Although the Board is not covered by GPRA, the Board voluntarily complies with the spirit of the act and, like other federal agencies, prepares a strategic plan as well as an annual performance plan and an annual performance report.² As required by the Federal Reserve Act, the Board also annually submits to the Congress the Annual Report describing the operations of the Federal Reserve System for the previous year, as well as a detailed explanation of the plans and resources discussed in the approved budgets of the Board and the 12 Federal Reserve Banks.³

Monetary Policy and Financial Stability

Goal 1: Facilitate efforts that support the congressional mandate for maximum employment and price stability through monetary policy.

Objective 1.1: Support the Board's and the Federal Open Market Committee's policy deliberations through the timely provision of high-quality research, analysis, and other information that enables sound and objective decisionmaking.

1.1.1 Identify and analyze economic and financial developments in support of the Federal Reserve's mission.

1.1.2 Stay abreast of technological and other changes to the financial system and assess potential impacts on the economy.

Objective 1.2: Actively pursue research, analysis, monitoring, and measurement to advance the public's understanding of key economic and financial issues.

1.2.1 Pursue research that promotes understanding of labor markets, inflation, and the financial system, including differences by demographic groups and areas, and implications for the functioning of the economy.

1.2.2 Incorporate diversity of thought, perspective, and experience into the Board's research program.

Objective 1.3: Further promote transparency, accountability, communication, and public education in monetary policy, economic research, and financial stability.

1.3.1 Foster public education and effective communication across a wide range of audiences.

1.3.2 Improve delivery of and public access to information that effectively communicates the Board's understanding of economic and financial conditions, financial stability, and the impact and efficacy of monetary policy.

Objective 1.4: Broaden capabilities to effectively and efficiently fulfill the Board's research mission through investment in people, technology, and data.

1.4.1 Ensure applicable expertise and a broad range of perspectives are available and used in economic research and analysis to strengthen understanding of economic developments and their implications for monetary policy and financial stability.

1.4.2 Enhance technological and data capabilities to conduct research, analysis, monitoring, and measurement that inform the public and policymakers, while meeting cybersecurity standards.

1.4.3 Enhance the Board's ability to collaborate with internal and external colleagues on research and analysis through technology, automation, infrastructure, and process advancements.

1.4.4 Sustain and nurture an inclusive culture and support a collaborative environment that encourages diversity of perspectives.

Supervision

Goal 2: Promote safety, soundness, and stability of financial institutions and consumer protection through supervision and regulation.

Objective 2.1: Continue to refine rules, practices, and tools to enhance the efficiency and effectiveness of supervision.

2.1.1 Identify and implement refinements to supervision that appropriately enhance transparency, promote accountability, and maintain fairness.

2.1.2 Enhance community bank supervision through improvements in efficiency, communication, outreach, and regulatory coordination.

Objective 2.2: Improve forward-looking risk-identification and assessment capabilities to inform policy and support timely and effective risk mitigation through supervision.

2.2.1 Enhance the supervision and regulation of operational resilience for supervised firms.

2.2.2 Monitor financial markets' consumer compliance risks to inform and direct supervision.

Objective 2.3: Further promote transparency, accountability, communication, diversity of perspectives, and public outreach to support the System's supervisory responsibilities.

2.3.1 Implement new capabilities and conduct regular outreach for sharing and exchanging information with external constituencies and diverse stakeholders.

Objective 2.4: Further improve supervisory and regulatory activities to support financial system stability.

2.4.1 Investigate new ways to identify risks impacting financial stability.

2.4.2 Collaborate with domestic and international groups to maintain coordination, develop policies and approaches, and gain broader understanding of the economy and the financial system.

Objective 2.5: Broaden capabilities to effectively and efficiently execute supervisory responsibilities through investment in people, technology, and data.

2.5.1 Investigate the use of new and emerging technologies to improve supervisory activities and examination processes.

2.5.2 Enhance the efficiency of mergers and acquisitions applications processes.

Payment System and Reserve Bank Oversight

Goal 3: Foster a safe, efficient, and accessible payment and settlement system through Reserve Bank oversight.

Objective 3.1: Support payment infrastructure modernization to serve changing stakeholder needs.

3.1.1 Conduct policy analysis of expanding operating hours for the Fedwire Funds Service and National Settlement Service in conjunction with Reserve Banks.

3.1.2 Support efforts to build the FedNow Service by working collectively with the Reserve Banks, including assessing public comments and issuing applicable notice in the Federal Register.

3.1.3 Conduct research and support international efforts related to digital innovations in payments.

Objective 3.2: Maintain an effective and secure U.S. currency program.

3.2.1 Identify opportunities to enhance and sustain production and new banknote design processes at the Bureau of Engraving and Printing to improve the performance, cost, and quality of Federal Reserve notes.

3.2.2 Pursue research and education strategies to advance counterfeit deterrence capabilities and support public confidence in the integrity and availability of Federal Reserve notes.

Objective 3.3: Continue evolving Reserve Bank oversight approach.

3.3.1 Enhance capabilities to assess Reserve Bank risk-management activities, including information sharing and accountability for fiscal stewardship.

Objective 3.4: Advance diversity in System leadership.

3.4.1 Connect with a broad set of diverse stakeholders and potential candidates for future System leadership positions.

Objective 3.5: Broaden capabilities to effectively and efficiently execute oversight responsibilities for payment systems and Reserve Banks through investment in people, technology, and data.

3.5.1 Strengthen hiring, development, alignment, and retention of talent in support of long-term workforce development and growth.

Public Engagement and Community Development

Goal 4: Promote broader, ongoing engagement with external individuals and groups and improved understanding of the Board's mission through outreach and public engagement.

Objective 4.1: Develop strategies to identify and engage audiences with a balanced and broad range of diverse perspectives.

4.1.1 Increase public outreach and engagement on the Federal Reserve's mission and responsibilities, including interaction with community and affinity groups.

4.1.2 Maximize opportunities to share broad and diverse perspectives among stakeholders and increase understanding of a wide range of community needs.

Objective 4.2: Expand communication and outreach efforts to increase transparency and understanding of the Federal Reserve's mission and activities and better inform decisions.

4.2.1 Facilitate communications with the public, the media, and the Congress to ensure timely and accurate dissemination of information.

4.2.2 Expand educational events, programs, and online resources about the Federal Reserve's mission and responsibilities.

4.2.3 Enhance public access to information through effective records management practices and in compliance with the Freedom of Information Act.

4.2.4 Investigate ways to expand outreach and broaden understanding of the Ombudsman function to increase transparency of the Federal Reserve's regulatory and supervisory actions.

Objective 4.3: Continue adapting and improving information management processes and communication vehicles.

4.3.1 Assess future needs for the public website and social media platforms to expand and improve the content strategy and usability to better inform the public.

4.3.2 Assess information management practices and resources to modernize technology in support of effective and efficient communication and the Board's decisionmaking.

Objective 4.4: Promote understanding of community development and consumer risks.

4.4.1 Conduct research and engage stakeholders to broaden perspectives, inform approaches, and understand challenges and opportunities in community development and risks to consumers in financial markets.

4.4.2 Support the Community Reinvestment Act modernization efforts through research, analysis, and external engagement.

4.4.3 Disseminate research on the financial conditions and experiences of households and communities, including those traditionally underserved and economically vulnerable.

Mission Enablement

Goal 5: Optimize operations and capabilities through efficient, effective, and sustainable stewardship and governance of resources.

Objective 5.1: Attract, develop, and retain diverse talent with varied experiences and perspectives to ensure the Board is able to meet workforce needs in a rapidly changing environment.

5.1.1 Foster employee engagement and an inclusive culture through organizational activities.

5.1.2 Strategically source highly qualified, diverse talent using market information, data analytics, targeted outreach, and leading recruiting practices.

5.1.3 Assess the organization's human resource programs to ensure they meet the needs of the current workforce in an effort to remain competitive in the labor market.

5.1.4 Provide targeted learning and development opportunities to cultivate current and future leaders to ensure readiness for leadership roles.

5.1.5 Conduct comprehensive workforce planning reviews throughout the organization to assess current human capital and to guide future workforce requirements.

Objective 5.2: Optimize the Board's workspace strategy and use of resources by leveraging opportunities to increase collaboration, efficiency, and productivity.

5.2.1 Implement the Board's long-term space strategy ensuring appropriate stewardship of resources.

5.2.2 Support implementation of updated technology to modernize the human capital and financial management platform and other administrative functions.

5.2.3 Evaluate communication tools to improve user experience with conferencing and collaboration technology in support of an intuitive digital workplace.

Objective 5.3: Enhance organizational efficiencies and capabilities to provide automation solutions that respond to stakeholder needs.

5.3.1 Enhance the computing environment by applying innovative technologies, including the expansion of cloud services and the exploration of artificial intelligence technologies to advance business capabilities.

5.3.2 Build upon existing electronic collaboration platforms, including increasing mobile access, to enhance communication, collaboration, and flexibility with both internal and external stakeholders.

5.3.3 Enhance cybersecurity continuous diagnostic and monitoring capabilities, perform security assessments, and implement processes to ensure environments that host Board data are in compliance with security and privacy policies.

Objective 5.4: Accelerate the ability to obtain, integrate, analyze, and share data and information throughout the organization.

5.4.1 Ensure compliance with the OPEN (Open, Public, Electronic, and Necessary) Government Data Act, including updating the Information Resource Management Strategic Plan, creating an inventory of data assets for the Federal Data Catalog, and adopting applicable standards.

5.4.2 Create an enterprise Data Strategic Plan that outlines the future state of large, enterprise data and technological capabilities.

5.4.3 Enrich content and functionality of data search and discovery tools to improve findability and facilitate analysis of unstructured content necessary to support business needs.

 

Footnotes