, Columnist
Fed Has Met Jobs Mandate. On Inflation, Not So Much
The central bank may not reach its target on prices until 2018.
Mission accomplished.
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Just because the Federal Reserve believes it has reached its objective of full employment and a stable rate of inflation doesn't mean it will be able to accelerate the pace of interest-rate increases.
In a speech this week, Fed Chair Janet Yellen said it was “fair to say” that the economy is moving toward the central bank's goals, and that gradually removing accommodation was warranted. After boosting the federal funds target rate by a quarter-percentage point in December 2015 and by the same amount last month, the Fed's so-called dot plot forecasts indicate that three more hikes are likely this year.