Fed Vice Chair Richard Clarida told Bloomberg that “rates will be at the current level, which is basically zero, until actual observed PCE inflation has reached 2%.”

“That’s ‘at least.’ We could actually keep rates at this level beyond that. But we are not even going to begin thinking about lifting off, we expect, until we actually get observed inflation … equal to 2%. Also we want our labor market indicators to be consistent with maximum employment … So that is the whites of their eyes.”

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