Were the inflation rate temporarily outside the target band, even for good economic reasons, the mere existence of inflation targets could be another excuse for tension between the Fed and the Congress. There is almost always at least potential tension between the Fed and the Congress, and both sides have learned how to handle it.
The announcements made by the Minister of Finance in his Budget Speech last week for the further relaxation of exchange controls can also have an important effect on the capital account of the balance of payments.