our 2 percent longer - run goal. conclusion in conclusion, monetary policy is having the desired effects on the economy and inflation. the future is inherently uncertain. as we work to achieve our dual mandate goals, we face two - sided risks. our decisions, as always, will be guided by the data, with our eyes squarely on our goals. 1 board of governors of the federal reserve system, statement on longer - run goals and monetary policy strategy, adopted effective january 24, 2012 ; as reaffirmed effective january 31, 2023. 2 john c. williams, a bedrock commitment to price stability, remarks at the 2022 u. s. hispanic chamber of commerce national conference, phoenix, arizona, october 3, 2022 ; john c. williams, peeling the inflation onion, remarks at the economic club of new york ( delivered via videoconference ), november 28, 2022. 3 federal reserve bank of new york, global supply chain pressure index. 4 ozge akinci, gianluca benigno, ruth cesar heymann, julian di giovanni, jan j. j. groen, lawrence lin, and adam i. noble, " the global supply side of inflationary 3 / 4 bis - central bankers'speeches pressures, " federal reserve bank of new york liberty street economics, january 28, 2022 ; and ozge akinci, gianluca benigno, hunter l. clark, william cross - bermingham, and ethan nourbash, " how much can gscpi improvements help reduce inflation?, " federal reserve bank of new york liberty street economics, february 22, 2023. 5 federal reserve bank of new york, households less optimistic about their financial situations, september 11, 2023. 6 john c. williams, a steady anchor in a stormy sea, remarks at snb - frb - bis high - level conference on global risk, uncertainty, and volatility, zurich, switzerland, november 9, 2022. 7 board of governors of the federal reserve system, federal reserve issues fomc statement, september 20, 2023. 4 / 4 bis - central bankers'speeches

john c williams : peeling the inflation onion, revisited remarks ( virtual ) by mr john c williams, president and chief executive officer of the federal reserve bank of new york, prepared for a regional visit to long island, 29 september 2023. * * * the federal reserve has two main monetary policy goals, often referred to as the " dual mandate " : maximum employment and price stability. as i will discuss in more detail, we are doing well on our maximum employment mandate, but we still have a ways to go to fully restore price stability. although inflation has come down from the peak reached last year, it is still too high. price stability is the bedrock upon which our economic prosperity and stability stands. the federal open market committee ( fomc ) has set a 2 percent longer - run goal for inflation and is committed to attaining that goal on a sustained basis. 1 before i go any further, i must give the standard fed disclaimer that the views i express today are mine alone and do not necessarily reflect those of the fomc or others in the federal reserve system. the inflation onion after peaking at just over 7 percent in june of last year, inflation is now 3 - 1 / 2 percent, based on the 12 - month percent change in the personal consumption expenditures price index. to understand why inflation rose so much and how it's coming back down, i find it useful to use the metaphor of an onion with various " layers " of inflation. 2 the outer layer of the onion consists of prices of globally traded commodities - lumber, steel, grains, and oil. the pandemic caused global demand for commodities to skyrocket. russia's war against ukraine set off a second sharp rise in commodity prices. since then, global demand has come into better balance with supply, and inflation in this layer has come down significantly. to give an idea of how big the swings in these inflation rates have been, food price inflation soared to over 10 percent and energy price inflation skyrocketed to over 40 percent in june of last year. over the past 12 months, as supply - demand imbalances receded, food price inflation dropped to about 3 percent, and, despite the recent rebound in oil and gasoline prices, energy prices have declined by about 3 - 1 / 2 percent. the middle layer of the onion is made up of goods like appliances, furniture, and cars. in the pandemic and its aftermath, demand for goods rose, supply - chain