“The larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained,” Yellen said today to the Economic Club of New York. 
The gap, in both cases, is large, with a jobless rate of 6.7 percent more than a percentage point higher than the top end of the Federal Open Market Committee’s estimate of full employment. Inflation, by the Fed’s preferred measure, is more than a percentage point below its 2 percent goal. It will take more than two years for the economy to close in on the Fed’s goals, she said, adding that the Fed’s forecasts in the past were disrupted by negative surprises, not positive ones.
Chosen excerpts by Job Market Monitor. Read the whole story at Yellen’s Mind-the-Gap Goals Rule Says Rates Stay Low – Bloomberg.
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