But inflation has not really been sufficiently low to get our high long-term interest rates lower, and this creates an economic cost that weighs more heavily on job creation as time goes on.
We have indicated that a consistently lower rate in the near term, at the midpoint of our target band (4.5%), would lower long-term interest rates and be more supportive of balance in the economy. What do we mean by balance? First, let me say what it is not.