This is what I would like to briefly explain now.3 In the past years inflation expectations in the euro area have declined markedly. This becomes clear when looking at financial markets, where such expectations are formed every day.
The Current State of the Economy As you know, the Congress has tasked the Federal Reserve with achieving stable prices and maximum employment--the dual mandate. Today, we are not far from achieving those goals. The Federal Open Market Committee (FOMC) has an objective of 2 percent for inflation, as measured by the annual change in the price index for personal consumption expenditures.