In Search of a Robust Inflation Forecast
The sound conduct of monetary policy is the bedrock
on which a well-functioning economy rests. In the
United States, the conduct of monetary policy is guided
by the goals set out in the 1977 amendment to the
Federal Reserve Act of 1913. According to this amendment,
the Federal Reserve System and the Federal Open
Market Committee (FOMC) should conduct monetary
policy to promote the goals of “maximum” employment
and output and to promote “stable” prices.
