The Federal Reserve has two main monetary policy goals, often referred to as the “dual mandate”: maximum employment and price stability. As I will discuss in more detail, we are doing well on our maximum employment mandate, but we still have a ways to go to fully restore price stability. Although inflation has come down from the peak reached last year, it is still too high. Price stability is the bedrock upon which our economic prosperity and stability stands. The Federal Open Market Committee (FOMC) has set a 2 percent longer-run goal for inflation and is committed to attaining that goal on a sustained basis.1 ... (full story)