The central bank’s policy committee said it would be monitoring “actual and expected inflation developments relative to its symmetric inflation goal.”<br />In this context, “symmetric” implies that it aims for 2 percent inflation and would be equally displeased by inflation that was too high or too low.<br />Second, markets now believe the Fed’s message that higher rates are on the way; bond markets suggest<br />that the Fed will actually follow through with its intentions on gradual interest rate rises.<br />Ms. Yellen evinced little fear that the Fed is behind the curve, suggesting<br />that two more interest rate increases are on the way over the remainder of 2017.<br />The overwhelming message was of gradualism — both on the rate of economic improvement<br />and the Fed’s own efforts to wind down its era of low interest rates.<br />That implies that the Fed is not inclined to overreact to the possibility<br />that inflation could drift slightly — and in the Fed’s view temporarily — above 2 percent in the coming months.<br />First, that day now feels imminent, with the unemployment rate at 4.7 percent and inflation closing on the 2 percent the Fed thinks best.<br />Yellen’s Message: My Work Here Is (Mostly) Done -<br />By NEIL IRWINMARCH 15, 2017<br />The economy will keep growing just enough to put more Americans back to work, but without overheating to generate excessive inflation.
