Let me give you an example: During last year’s community bank research conference held at the Federal Reserve Bank of St. Louis, 10 a community bank based in Santa Barbara described the harrowing months around the end of 2017.
This is an evolution from the approach earlier in the inflation-targeting regime, in which forecasts of inflation played a more central role in decision-making about interest rates. We continue to pay close attention to the forecasts, but we want to see actual inflation outcomes consistent with the target before moving the cash rate.