Most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter. But if the economy surprises us, our judgments about appropriate monetary policy will change. References Ascari, Guido, and Argia M. Sbordone (2014).
“The Macroeconomics of Trend Inflation,” Journal of Economic Literature, vol. 52 (September), pp. 679–739. Ball, Laurence (2013). “The Case for Four Percent Inflation,” Central Bank of the Republic of Turkey, Central Bank Review, vol. 13 (2), pp. 17–31. Bernanke, Ben S. (2012).