The costs of asset purchases Turning to the potential costs of the Federal Reserve’s asset purchases, there are some that definitely need to be monitored over time. At this stage, I do not see any that would cause me to advocate a curtailment of our purchase program.
“Understanding,” “Goal,” and “Target” Six years ago, in March 2006, the Bank introduced its own framework under which it expressed price stability in numerical terms, named “an understanding of medium- to long-term price stability.” After undergoing a series of changes in expression, the Bank’s recent “understanding” was “a positive range of 2 percent or lower, centering around 1 percent” on the basis of a year-on-year rate of change in the CPI.