So, when there is a sustainable return to an inflation below but close to 2%. Our policy is working and we see a light at the end of the tunnel. And it isn’t the lights of a train rushing towards us, as some people jokingly say. But as to when: it will take time.
For a fuller explanation of this “expected impact” approach, see Board of Governors of the Federal Reserve System (2015), “Calibrating the G-SIB Surcharge,” white paper (Washington: Board of Governors of the Federal Reserve System, July 20), www.federalreserve.gov/aboutthefed/boardmeetings/gsib-methodology-paper-20150720.pdf.