- Fed not aiming to push inflation above 2%
- sees inflation lingering around current levels for a long time
- ‘ is having a hard time seeing where really robust growth can come from’
- ‘Fed bond purchases should not be regarded as ‘some sort of chapter in a currency war”
- expects to see US economy back at 2% inflation and unemployment below 7% in ‘something like 2013′, with unemployment around 8% by end of 2012
- says US economy has real downside risk, growth could fall short of what Fed is expecting
- even if US doesn’t experience deflation, continued disinflation could weaken recovery further
per Wall Street Journal
