Still, at the margin, such a target might enhance the ability of the Fed to anchor inflation expectations and perhaps also enhance the ability of the Fed to pursue its stabilization objective without undermining the public's confidence in its commitment to low inflation.
Institutionalizing good monetary policy Most observers would rate monetary policy in the United States over the last two decades as very good. Good policy, in turn, depends on the combination of a well-defined mandate, a disciplined strategy for achieving the mandate, and the quality of the FOMC and its staff working to implement the strategy.