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In January 2012, the U.S. Federal Reserve announced a 2% PCE price level “goal” in these words:

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 judges 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. Communicating this inflation goal clearly to the public helps keep longer-term inflation expectations firmly anchored, thereby fostering price stability and moderate long-term interest rates and enhancing the Committee’s ability to promote maximum employment in the face of significant economic disturbances.

Let’s see how the PCE price level is doing more than three years later.
pceindexlevel
The Fed is not on track to meet its goal anytime soon. And that’s putting it mildly.

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