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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