The recent conference was on January 24-25 and the topic focused on the “Longer-Run Goals and Policy Strategy” (2012 FOMC Meetings). FOMC provides statement of longer-run goals and make a 2% numerical inflation target. In setting monetary policy, the Committee seeks to mitigate deviations of inflation from its longer-run goal and deviations of employment from the Committee's assessments of its maximum level. Inflation, employment, and long-term interest rates fluctuate over time in response to economic and financial disturbances. Moreover, monetary policy actions tend to influence economic activity and prices with a lag. Therefore, the Committee's policy decisions reflect its longer-run goals.
There is no doubt that we are experiencing economy recession now; however, there are still a lot of positive indicators on the economy. Firstly, Housing seems to have stabilized. The price of houses is steady and buyers have been increasing during these