Getting broad stakeholder input was also important to the FSB and to me personally, particularly given the varied impact of the COVID event and divergent paths to recovery. The FSB consulted directly with private-sector stakeholders, gathering input from academics, financial-sector participants, and trade associations. This input remains critical as we consider our path forward, including how to unwind emergency policy measures.
This extension reflected the fact that the economy had not yet reached full capacity in the current cyclical upswing. It would, therefore, be helpful to have the economy demonstrate more fully its ability to perform well under conditions of low inflation before determining the appropriate long-run target consistent with price stability.