Unfortunately, potential output growth tends to be variable and difficult to measure with precision. A deeper asymmetry arises from the fact that, unlike the long-run rate of inflation, the Federal Reserve cannot control, and thus cannot be held responsible for, the long-run economic growth rate. 17  The Monetary Policy Report is required by the Congress under Section 2B of the Federal Reserve Act.
The report is required to contain “a discussion of the conduct of monetary policy and economic developments and prospects for the future . . .” The projections may be interpreted as satisfying part of the requirement to provide the Federal Reserve’s view on prospects for the future. BIS Review 15/2003  7  useful information to the public.