This structure ensures that our national monetary policy has its roots not just in Washington or on Wall Street, but also on Main Street and across our diverse nation. Whether we vote or not, all Reserve Bank presidents attend the FOMC meetings, participate in the discussions, and contribute to the Committee’s assessment of the economy and policy options.
The specific number representing "price stability" is "2 percent" in terms of the year-on-year rate of change in the CPI. For reasons why this needs to be 2 percent, I will explain three points in sequence: a bias in price statistics, securing policy room for the future, and a global standard. Let me start with a bias in price statistics.