goals. 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, its medium - term outlook, and its assessments of the balance of risks, including risks to the financial system that could impede the attainment of the committee ’ s goals. 3. the maximum level of employment is a broadbased and inclusive goal that is not directly measurable and changes over time owing largely determined by to nonmonetary factors that affect the structure and dynamics of the labor market. these factors may change over time and may not be directly measurable. consequently, it would not be appropriate to specify a fixed goal for employment ; rather, the committee ’ s policy decisions must be informed by assessments of the shortfalls of employment from its maximum level of employment, recognizing that such assessments are necessarily uncertain and subject to revision. the committee considers a wide range of indicators in making these assessments. information about committee participants ’ estimates of the longer - run normal rates of output growth and unemployment is published four times per year in the fomc ’ s summary of economic projections. for example, in the most recent projections, the median of fomc participants ’ estimates of the longer - run normal rate of unemployment was 4. 4 percent. 4. the inflation rate over the longer run is primarily determined by monetary policy, and hence the committee has the ability to specify a longer - run goal for inflation. the committee reaffirms its judgment that inflation at the rate of 2 percent, as measured by the annual change in the price index for personal consumption expenditures, is most consistent over the longer run with the federal reserve ’ s statutory mandate. the committee would be concerned if inflation were running persistently above or below this objective. communicating this symmetric inflation goal clearly to the public helps keep judges that longer - term inflation expectations firmly that are well anchored, thereby at 2 percent fostering price stability and moderate long - term interest rates and enhancing enhance the committee ’ s ability to promote maximum employment in the face of significant economic disturbances. in order to anchor longerterm inflation expectations at this level, the committee seeks to achieve inflation that averages 2 percent over time, and therefore judges that, following periods when inflation has been running persistently below 2 percent, appropriate monetary policy will likely aim to achieve inflation moderately above 2 percent for some time. 5. monetary policy actions tend to influence economic activity, employment, and prices with a la

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