With regard to the introduction of “the price stability goal in the medium to long term” in February, a frequent interpretation is that the Bank has finally adopted the so-called “inflation targeting framework”.
Among the issues we considered were how to encourage a level playing field for all market participants, and when and where regulators should respond to the periodic technical difficulties the market sometimes experienced. As we drew up the report, we were deeply aware of the importance that Treasury markets held for the American economy.