- Fed must stand ready to do even more if needed to meet dual mandate
- More action necessary if growth outlook worsens and can’t sustain lower jobless rate
- More action warranted if med-term inflation outlook falls significantly below 2%
- Expects Fed to fall short of employment and inflation mandates “for some time”
- If needed, bond or MBS buys would be effective
- Lowers growth forecast to 2.25% in 2012 (from 2.5% last month)
- Sees growth of 2.5% in 2013
Ever so slightly more dovish than last month but I can’t envision him sitting around the Fed table and arguing for more easing.
