Progress toward Price Stability: A Report Card for 1994

The Federal Reserve tightened monetary policy six times in 1994. The purpose of these policy moves was to encourage sustainable, noninflationary economic growth. Early actions were taken to move monetary policy toward a less accommodative stance than was followed in 1993. Later actions were taken \\"against the backdrop of continuing strength in the economic expansion and high levels of resource utilization.\\" These later actions were intended \\"to keep inflationary pressures contained, and thereby foster sustainable economic growth.\\" All of the actions were in keeping with the Federal Reserve's long-run goal of price stability, which is the key contribution the Federal Reserve can make toward maximizing long-run growth and living standards in the United States.> Kahn examines the behavior of inflation in 1994 in relation to the Federal Reserve's goal of achieving price stability over time. The article is the second in an annual series assessing the Federal Reserve's progress toward achieving price stability.