CSPAN Key Capitol Hill Hearings April 17, 2014
Because inflation is now very low, fed policy is focused on reducing slack in the labor market and raising inflation to about 2 . At some point a stronger economy may bring higher inflation rates. With the fed be willing to raise the fed funds Interest Rate above the rate of inflation if the inflation rate begins rising above 2. 5 even if there is still slack in the labor market question mark so let me emphasize that our commitment is twosided. We do not want to see inflation run persistently below our two percent target. We also do not want to see inflation run persistently above our two perc...