Powell Questioned on Projections

Q: Do the median projections in the SEP constitute "substantial further progress" toward the dual mandate?

• A: Not associating that test with specific numbers. Our guidance for int rates and asset purchases will keep monetary policy accommodative until goals are achieved.
• That is a powerful message. So "substantial further progress" means what it says. "It means we will be looking for employment to be closer to assessments of maximum level and inflation to be substantially closer to our 2% goal before we make adjustments to purchases."
• Re tightening policy... "I would also point out by increasing our asset holdings we see ourselves as adding policy accommodation... There will come a time when the economy will not need increasing amounts of policy accommodation. When that time comes is uncertain and is in any case a ways off. So I can't give you an exact set of numbers. We will as we approach that point we will be evaluating that."