And, in the context of well-contained inflation, the evidence of remaining underused resources gives us a good reason to hold the real rate below even the intermediate-run notion of its equilibrium to allow the economy to be firmly set on a path that will shrink the pool of these underused resources over a reasonable period.
But as the expansion regains its footing and resource slack is worked down, we should expect both that the equilibrium real rate will move toward its longer-run level and that policymakers will no longer find it appropriate to keep the actual rate below its equilibrium. That is, the FOMC will likely be removing its policy accommodation over time.