They are often collectively referred to by saying that the Federal Reserve views inflation as being “mandate-consistent” if it is running at “2 percent or a bit under”. Congress has also mandated that the FOMC set monetary policy so as to promote maximum employment.
That’s why we have decided, in the future, to also buy paper with maturities between one and two years and, to the extent needed, with yields that are below the current rate of interest on our deposit facility, namely –0.4%. This puts us in a position to purchase bonds, at least until the end of 2017.