But there are two relatively common and important instances in which the mandate dashboard becomes straightforward to use in a qualitative way. Suppose inflation and expected inflation rise and unemployment and expected unemployment fall, as is often true in a recovery. Then, regardless of how it weights the two mandates, the FOMC should reduce the level of accommodation.
In contrast, suppose inflation and expected inflation go down and unemployment and expected unemployment go up, as is often true when the economy slows. Then, regardless of how it weights the two mandates, the FOMC should increase the level of accommodation.