After 2508 days, the Fed still won’t raise interest rates from near zero WRITTEN BY
Matt Phillips
'But even if unemployment was back to “normal,” the Fed’s job is more complicated than that. The US central bank has to worry about boosting employment and keeping prices stable. (In the world of central bankers, price stability essentially means a slow and steady rise in prices. The Fed’s target for inflation is 2%.)
Unfortunately, prices—the gauge the Fed likes to look at is known as the PCE price index—have persistently undershot the Fed’s 2% goal over the last year."
http://qz.com/535275/after-2508-days-the-fed-still-wont-raise-interest-rates-from-near-zero/FOMC Holds Interest Rates Steady but Upgrades Assessment of the Economy
BY TOM MOELLER OCTOBER 28, 2015 Copyright 2015 Haver Analytics
Price inflation was seen as running below the Fed's long term objective of 2% as a result of lower energy prices and lower prices of non-energy imports. Expectations remained the same as last meeting for a return to 2 percent inflation "over the medium term as the labor market improves and the effects from lower energy and import prices fade"; however, "longer-term inflation expectation have remained stable."
As indicated earlier, "The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective."
Moderate Growth Projected
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