4 That is, the Committee would be concerned if inflation were running persistently above or below our objective. In my view, even if inflation was expected to return to 2 percent over time, persistent deviations from our goal in either direction could cause economic harm and could ultimately unmoor longer-term inflation expectations.
Of course, whether the Committee would take action to address a persistent deviation from its inflation objective would depend on the circumstances--and, in particular, on the outlook for employment and inflation and an assessment of the likely lags in the effects of monetary policy.