Reserve Bank targets on. The Federal Reserve Bank have to keep the inflation rate stable to get to the goal. Now the Fed is keeping the short-term interest rate at 0% to cause people have a higher demand on good and services, to keep the inflation rate stable. To make sure if they are on track or off track, the price stability of inflation should be under 2%. If the inflation rate is under 2%, the Federal Reserve Bank is on track. The second target is on the long-term interest rate. As we all know, the Federal Reserve Bank can control the short- term interest rate by open market operation, but they can't control the long- term interest rate. Fed operate the short-term interest rate close to 0%, by controlling the short-term interest rate with the open market operation to keep the long-term interest rate stable. If the long-term interest rate is keep in the range of 2% of their expected interest rate, they will know they are on track. Also the Fed are targeting on the nominal GDP growth, the influence the nominal GDP, they can also use the open market operation to control the short- term interest rate to reach the target. By keeping the interest rate low, control