Dual mandate – inflation Inflation is currently running below the FOMC’s 2 percent long-term objective for personal consumption expenditure (PCE) price inflation, and these readings have our attention. But inflation often fluctuates for transitory reasons. We generally try to look through such transitory movements, whether above or below our objective.
Since last March, the FOMC has been tightening monetary policy through a combination of increasing the federal funds rate by 4-1/4 percentage points and reducing our balance sheet holdings.