Federal Reserve Finally Decides to Uphold Dual Mandate

12/12/2012 04:08:00 PM
From today's statement from the Federal Reserve:
the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored. 
This is pretty significant, since it means that for the first time ever the Federal Reserve will target the unemployment, offering an open-ended commitment to continue quantitative easing until the unemployment rate falls below 6.5%.