These considerations suggest that, for many years to come, the FOMC will have to maintain low real interest rates to achieve its congressionally mandated goals. I see this conclusion as broadly consistent with the April FOMC statement, which predicts that the target fed funds  2  Kocherlakota (2012) provides a formal model of this mechanism.
BIS central bankers’ speeches  3  rate will remain low for some time after inflation and employment are near mandateconsistent levels.