The answers to the questions posed at the beginning of this section are (i) yes, central bank actions in this crisis were by and large not only appropriate, but also innovatively so, in responding to the economic crisis of 2007-2009, though less so in the earlier years in which financial excesses developed; (ii) for those banks practicing flexible inflation targeting and with a financial stability responsibility and tools to do the job (e.g.
The Committee said that it will want to be reasonably confident that inflation will move back to 2 percent over the medium term. On a 12-month basis, headline inflation in February, as measured by the personal consumption expenditures price index, stood at 0.3 percent; meanwhile, core inflation, which excludes volatile energy and food components, was 1.4 percent.