The guidance on asset purchases, introduced in December, commits us to increasing our holdings of securities at least at the current pace until substantial further progress has been made toward the Committee’s maximum-employment and price-stability goals.
My personal view is that the rise in inflation—even after discounting temporary factors—and inflation expectations since December will prove sufficient to satisfy the standard for inflation in the guidance around asset purchases later this year, but improvement in the labor market has been slower than I would have liked.