The statements noted that “in determining how long to maintain the current 0 to ¼ percent target range for the federal funds rate, the Committee will assess progress – both realized and expected – toward its objectives of maximum employment and 2 percent inflation.” In assessing this progress, the Committee reported that it will look at a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments.
The FOMC also noted, based on its assessment of these factors, “that it likely will be appropriate to keep its target federal funds rate near zero for a considerable time after the asset purchase program ends ...” I objected to this forward guidance regarding the expected timing for raising the funds rate because I believe this language is no longer appropriate or warranted.