Monetary policy can be a powerful tool, but it is not a panacea for the problems currently faced by the U.S. economy. Fostering healthy growth and job creation is a shared responsibility of all economic policymakers, in close cooperation with the private sector.
But total CPI inflation would be even lower than 1 per cent, in fact quite close to zero, were it not for exchange-rate effects, which are boosting total inflation by 0.6 to 0.7 percentage points, and some additional one-time factors.