I’ve said that FOMC participants seek to adopt what they view as the appropriate policy choice. That provides a natural segue into my next topic: the policy objectives of the FOMC. The FOMC has a dual mandate, established by Congress: to set monetary policy so as to promote price stability and maximum employment.
To examine the demand side of the equation, let me first provide a backdrop in Slide 9. Generally speaking, as households grow more affluent, the proportion of their income that they spend on food declines. This is a universal pattern and India is no different.