Reaching its 2
percent inflation goal, however, has remained elusive for the Fed, and that rate is not expected to be hit until 2019.
Not exact matches
CNBC's Steve Liesman reports on the possible interest rate hike after the Fed met both
goals with a strong jobs report and an
inflation target of two
percent.
Though the European Central Bank has been encouraged by the economy's momentum, it's still pursuing crisis - era stimulus policies to get the annual rate of
inflation back to its
goal of just below 2
percent.
Inflation probably won't rise back to the Fed's 2
percent goal until 2018, he said, and GDP probably contracted last quarter.
Federal Reserve policymakers have a
goal of 2
percent inflation, which they believe is a sign that the economy is strong but not moving too quickly.
To be sure, that could change if the economic data come in weaker than expected, especially if
inflation doesn't rise towards the Fed's 2
percent goal.
In fact, Brainard said the Fed should consider letting
inflation run «modestly above» the 2
percent goal before hiking again.
The investor lambasted what he called an «arbitary» 2
percent inflation target set by the central bank, a
goal he views as both outdated and dangerous.
But don't expect rates to stop there: In her recent speech, current Federal Reserve Board chair Janet Yellen stated the Fed's
goal of reaching a 2 -
percent inflation target.
The Fed uses the word «symmetric» to emphasize that its
goal is to prevent
inflation running persistently above or below 2
percent.
Inflation of 1.2
percent annually is short of the bank's
goal of just under 2
percent considered best for the economy.
That assumes unemployment remains low and
inflation approaches its 2
percent goal.
Table 2 shows that neither
inflation indexed bonds nor the swap market expect the Fed to hit its 2
percent PCE
inflation goal in the foreseeable future.
Another rate hike, they said, would hurt the Fed's
goal of getting
inflation back up to 2
percent annually.
Stagnant wages in 2014 helped hold the Fed's preferred
inflation gauge below its 2
percent goal, fueling bond gains that caught almost everyone off - guard.
But the FOMC statement said the headline and core PCE
inflation measures «have moved close» to the two
percent goal since the last meeting.
One ex-policymaker recently suggested the BOJ focus first on an easier
goal of 1
percent inflation.
...
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.
Inflation rose 0.7
percent for the 12 months ending April, below the 2
percent goal of the FOMC.
The Committee sees this guidance as consistent with its previous statement that it likely will be appropriate to maintain the 0 to 1/4
percent target range for the federal funds rate for a considerable time following the end of its asset purchase program in October, especially if projected
inflation continues to run below the Committee's 2
percent longer - run
goal, and provided that longer - term
inflation expectations remain well anchored.
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.
The STRIDE glide path reduces equity allocations starting 20 years prior to the target date, where the
goal allocation at the target date is 75
percent Treasury
Inflation Protection Securities and 25
percent equities.
In light of the current shortfall of
inflation from 2
percent, the Committee will carefully monitor actual and expected progress toward its
inflation goal.
The Committee now anticipates, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6-1/2
percent, especially if projected
inflation continues to run below the Committee's 2
percent longer - run
goal.
When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer - run
goals of maximum employment and
inflation of 2
percent.
The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6-1/2
percent, especially if projected
inflation continues to run below the Committee's 2
percent longer - run
goal.
In particular, 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.
Assuming a return on your investments of 6
percent — a fairly conservative rate — and a 3
percent inflation rate over time, you'll need to save $ 1,437 per month to meet your
goal.
The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected
inflation continues to run below the Committee's 2
percent longer - run
goal, and provided that longer - term
inflation expectations remain well anchored.
CHICAGO (Reuters)-- Chicago Federal Reserve Bank President Charles Evans, one of the Fed's most dovish policymakers, said Saturday that he is optimistic
inflation will reach the Fed's 2
percent goal...
«On the one hand, the associated tightness in the labor market might help speed the return of
inflation to the committee's 2
percent goal and induce a further increase in labor force participation,» the minutes said.