Policymakers are looking to control inflation by targeting low and stable levels. However, predicting inflation and its response to policy changes is challenging due to weak and unstable relationships between inflation indicators and inflation itself. The impact of monetary policy instruments on inflation also varies over time and is hard to estimate accurately. Policy rules suggest that the federal funds rate should be raised immediately after a shock to prevent prices from rising. Comparing price-level targeting with nominal-income targeting shows that focusing on the latter may be more effective due to the difficulties in forecasting and controlling inflation.