Our September FOMC statement also calls for policy to remain accommodative for some time after liftoff. Once the conditions to commence policy normalization have been met, the SEP “dot plot” will convey the median participant’s projections over a three-year horizon not only for inflation, but also for the pace of liftoff as well as the ultimate destination for the policy rate.
I will have more to say shortly about a relevant policy rule benchmark that I believe is consistent with the new framework. Fourth element The new framework is asymmetric.