In our opinion, this can be done by using existing European resources more efficiently. These steps must be complemented by governance reforms and credible fiscal arrangements within the European monetary union. In other advanced countries, the priority must be to agree on credible, concrete and executable plans to restore fiscal sustainability consistent with the commitments made at last year’s G-20 Leaders Summit in Toronto.
We continue to expect that it will be appropriate to maintain the current target range for the federal funds rate until labor market conditions have reached levels consistent with the Committee’s assessment of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.