Allowing inflation to rise would not be in the public interest and would be contrary to our legislative mandate for stable prices and maximum employment. Maintaining an environment of low and stable inflation facilitates planning, saving, and capital investment by households and businesses and thus is a prerequisite for allowing the economy to realize its potential.
I assure you that we on the FOMC will continue to monitor economic developments closely and will act as necessary to promote both price stability and sustainable economic growth. 4  BIS Review 112/2007