11  target is to increase the ability of the central bank to deal with the severe recessions that follow financial crises, then a better strategic approach might be to rely on more vigorous supervisory and macroprudential policies that could help reduce the likelihood of such events.
Further, seeking an inflation rate in the vicinity of 4 percent or higher would certainly stretch the meaning of “stable prices” in the Federal Reserve Act. 12 Conclusion In conclusion, today, I have discussed with you how persistently high inflation hurts everyone and how the Fed must jointly achieve price stability and maximum employment to fulfill its dual mandate over time.