At its December meeting, the FOMC also recast its forward guidance to clarify how the target for the federal funds rate is expected to depend on future economic developments.
Specifically, we said that we anticipate that an exceptionally low funds rate is likely to be warranted at least as long as the unemployment rate remains above 6-1/2 percent, inflation over the period between one and two years ahead is projected to be no more than 1/2 percentage point above 2 percent, and longer-term inflation expectations remain well anchored.