It was in this context that the creation of the SSM became critical. The SSM provided a catalyst for the clean-up of the banking system to take place more quickly and more comprehensively than would otherwise have been the case. Why was this?
We also expect it will be appropriate to maintain the current target range for the federal funds rate at 0 to 1/4 percent until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment, until inflation has risen to 2 percent, and until inflation is on track to moderately exceed 2 percent for some time.