The Federal Reserve is required by law to conduct monetary policy to achieve maximum employment and stable prices. We haven’t announced an explicit inflation rate target consistent with that dual mandate, but the Federal Reserve governors and Reserve Bank presidents publish our individual forecasts for inflation over the longer run, conditional on our individual views of appropriate monetary policy.
Those forecasts indicate that most of the FOMC participants believe that inflation should converge to 1–3/4 to 2 percent over time. Recently, some prominent economists have called for central banks to raise their inflation targets to about 4 percent.