Federal Reserve Finally Decides to Uphold Dual Mandate
Matthew Martin
12/12/2012 04:08:00 PM
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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%.