Another Take on Bernanke and the Fed Speech

link here to article

The Fed is required by law to take actions which support price stability and employment stability. It has most often been stronger at providing price stability than it has at providing employment stability. Currently CORE inflation is 50% below the target rate of 2%. That implies that inflation is below the target rate and that the focus should be on employment stability. The point raised in this article is that the Fed would take actions to ward off inflation above the 2% target but it is less concerned about inflation below the target rate. In other words, 2% is an upper limit to inflation and not a real target.