Federal Reserve officials on Wednesday doubled down on efforts to convince investors they will keep monetary policy easy for years to allow unemployment to fall, emphasizing that interest rates will stay near zero until inflation gets to 2 percent and stays there, Reuters reported. The Fed’s governing board made that vow last week at its regularly scheduled policy meeting, promising to leave rates at their current near-zero levels until the economy reaches full employment, inflation has risen to 2 percent, and is on track to moderately exceed that level. Both Fed Vice Chair Richard Clarida and Chicago Fed President Charles Evans were adamant on yesterday: Rates will not increase until labor markets recover fully from the economic downturn caused by the coronavirus, and prices hit the Fed’s target. Boston Fed President Eric Rosengren said it may take longer for the central bank to hit that target if infections rise in the fall and winter, leading to slower growth. “We’d be lucky to get 2% inflation within” four years, Rosengren said during a virtual forum organized by the Boston Economic Club.
