we will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer term inflation expectations remain well anchored at 2 percent. as always, in assessing the appropriate stance of monetary policy, we will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if we saw signs that the path of inflation or longer - term inflation expectations were moving materially and persistently beyond levels consistent with our goal. in addition, we are continuing to increase our holdings of treasury securities and agency mortgage backed securities at least at their current pace until substantial further progress has been made toward our maximum - employment and price - stability goals. these purchases have materially eased financial conditions and are providing substantial support to the economy. at our june meeting, the committee discussed the economy ’ s progress toward our goals since we adopted our asset purchase guidance last december. while reaching the standard of “ substantial further progress ” is still a ways off, participants expect that progress will continue. we will continue these discussions in coming meetings. as we have said, we will provide advance notice before announcing any decision to make changes to our purchases. we understand that our actions affect communities, families, and businesses across the country. everything we do is in service to our public mission. the resumption of our fed listens initiative will further strengthen our ongoing efforts to learn from a broad range of groups about how they are recovering from the economic hardships brought on by the pandemic. we at the federal reserve will do everything we can to support the recovery and foster progress toward our statutory goals of maximum employment and stable prices. thank you. i am happy to take your questions. 2 / 2 bis central bankers'speeches

americans and hispanics. despite substantial improvements for all racial and ethnic groups, the hardest - hit groups still have the most ground left to regain. inflation has increased notably and will likely remain elevated in coming months before moderating. inflation is being temporarily boosted by base effects, as the sharp pandemic - related price declines from last spring drop out of the 12 - month calculation. in addition, strong demand in sectors where production bottlenecks or other supply constraints have limited production has led to especially rapid price increases for some goods and services, which should partially reverse as the effects of the bottlenecks unwind. prices for services that were hard hit by the pandemic have also jumped in recent months as demand for these services has surged with the reopening of the economy. to avoid sustained periods of unusually low or high inflation, the federal open market 1 / 2 bis central bankers'speeches committee ’ s ( fomc ) monetary policy framework seeks longer - term inflation expectations that are well anchored at 2 percent, the committee ’ s longer - run inflation objective. measures of longer - term inflation expectations have moved up from their pandemic lows and are in a range that is broadly consistent with the fomc ’ s longer - run inflation goal. two boxes in the july monetary policy report discuss recent developments in inflation and inflation expectations. sustainably achieving maximum employment and price stability depends on a stable financial system, and we continue to monitor vulnerabilities here. while asset valuations have generally risen with improving fundamentals as well as increased investor risk appetite, household balance sheets are, on average, quite strong, business leverage has been declining from high levels, and the institutions at the core of the financial system remain resilient. monetary policy i will now turn to monetary policy. at our june meeting, the fomc kept the federal funds rate near zero and maintained the pace of our asset purchases. these measures, along with our strong guidance on interest rates and on our balance sheet, will ensure that monetary policy will continue to deliver powerful support to the economy until the recovery is complete. we continue to expect that it will be appropriate to maintain the current target range for the federal funds rate until labor market conditions have reached levels consistent with the committee ’ s assessment of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. as the committee reiterated in our june policy statement, with inflation having run persistently below 2 percent,