New Fed Boss Janet Yellen’s First Testimony in Front of the
Congress:
The most interesting bit (I have added the emphasis):
“The Committee has emphasized that a highly accommodative policy
will remain appropriate for a considerable time after asset purchases end. In
addition, the Committee has said since December 2012 that it expects the
current low target range for the federal funds rate to be appropriate at least
as long as the unemployment rate remains above 6-1/2 percent, inflation is
projected to be no more than a half percentage point above our 2 percent
longer-run goal, and longer-term inflation expectations remain well anchored.
Crossing one of these thresholds will
not automatically prompt an increase in the federal funds rate, but
will instead indicate only that it had become appropriate for the Committee to
consider whether the broader economic outlook would justify such an increase.”
-
Yellen (Feb 11, 2014)