This assessment is also compatible with Tinbergen’s rule that, in case of trade-offs between objectives, policy makers need as many (independent) policy instruments as objectives, in order to fully achieve them.
U.S. inflation as measured by the core personal consumption expenditures (PCE) price index, which excludes volatile food and energy prices and is a better gauge of underlying inflation pressures, has been muted. And some indicators of longer-term inflation expectations remain at the low end of a range that I consider consistent with our price-stability mandate.