However, because a higher rate of inflation can arguably be achieved over time through a sufficiently tight labor market, this risk seems low to me as long as the Federal Reserve is committed to achieving its inflation objective.
24  In the simulations reported by Reifschneider, “Gauging the Ability of the FOMC to Respond to Future Recessions,” in note 8, overcoming the effects of the zero lower bound during a severe recession would require about $ trillion in asset purchases and pledging to stay low for even longer if the average future level of the federal funds rate is only 2 percent.