- Fed should buy bonds until jobless rate falls to about 7% and heading lower
- US jobless rate far above long term normal level, payrolls remain about 5m jobs short of where they should
- US economy has a long way to go to return to healthy normalcy
- Expects 2013 growth of about 2.5%
- Likely conditions for first official rate hike will be in late 2015
- Fed assets to provide accommodation for a long time
- Sees inflation increasing toward 2% target in 2014
- Simply no signs of labour cost pressures building and wage growth has been modest
- 2% inflation is a target not a ceiling
- Below target inflation is costly and make debt financing more burdensome than borrowers expected
Comments out via Bloomberg and Reuters
After yesterdays figures there may be some economists revising up their GDP estimates. The rest of us will be signing;
