Question: The FOMC statement of December 12 2012 indicated that the
The FOMC statement of December 12, 2012, indicated that the target range for the federal funds rate would continue at least until the rate of unemployment falls below 6½ percent or the projected rate of inflation one to two years ahead exceeds the FOMC’s two-percent objective by one-half percentage point. From January until December 2012, plot the effective federal funds (FRED code: FEDFUNDS), the unemployment rate (FRED code: UNRATE) and the inflation rate based on the percent change from a year ago of the core price index for personal consumption expenditures (FRED code: PCEPILFE). Judging by the data, would you expect FOMC interest-rate policy to change soon?
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