The FOMC "Statement on Long-Run Goals and Monetary Policy Strategy"made it clear that the Federal Reserve would be pursuing ________,consistent with its dual mandate.
A)a flexible form of inflation targeting
B)a strict form of inflation targeting
C)a zero inflation targeting
D)an implicit inflation targeting

Question

Quizplus · Accepted Answer

The FOMC statement specified that the Federal Reserve would be pursuing a "flexible form of inflation targeting" that is consistent with its dual mandate of promoting maximum employment and price stability. This means that the Fed will aim to achieve an inflation rate of 2% over the longer run, but will also take into account other economic factors such as employment and output when making monetary policy decisions.