12 Second, to address the downward bias to inflation associated with the proximity to the effective lower bound, the statement adopts a flexible inflation averaging strategy that seeks to achieve inflation that averages 2 percent over time in order to ensure longerterm inflation expectations are well anchored at 2 percent.
These factors, along with the ability of households to tap equity accrued in residential properties, should continue to bolster consumer spending and the purchase of new homes. The recent declines in energy prices are another positive factor in the economic outlook.