The Fed's Signaling Mechanism for the Federal Funds Rate

The Fed's monetary policy actions are guided by our mandate to promote maximum employment and price and stable prices for the American people. And the process of getting inflation back down to 2% has a long way to go. Core PCE inflation, which excludes volatile food and energy prices, is projected to run higher than total inflation. Despite elevated inflation, longer term inflation expectations appeared to remain well anchored as reflected in a broad range of surveys of households, businesses and forecasters.