In addition, the Committee adopted a statement in 2012 concerning its longer-run goals and monetary policy strategy that included a specific 2 percent longer-run objective for inflation and a commitment to follow a balanced approach in pursuing our mandated goals. Transparency concerning the Federal Reserve’s conduct of monetary policy is desirable because better public understanding enhances the effectiveness of policy.
Therefore, it is essential that any budgetary leeway granted by the current favorable economic environment should be used for lasting budgetary consolidation in order to prepare for challenges such as population ageing and to create room for maneuver for future economic downturns.