And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well. Our monetary policy framework, as embodied in our Statement on Longer-Run Goals and Monetary Policy Strategy, emphasizes that having longer-term inflation expectations anchored at our longer-run objective of 2 percent helps us achieve both our dual-mandate objectives.
While we cannot measure longer-term expectations directly, we monitor a variety of survey- and market-based indicators. In the recent period, shortterm inflation expectations have, of course, risen with inflation, but longer-run expectations remain well anchored in their historical ranges (figure 7).