US economy still far from where we would like it to be, may be some time before Fed policy turns normal. Agrees with Yellen that surest path to more normal monetary policy is to do all we can to promote robust recovery. Fed still expect labor market to continue to improve, inflation to move toward 2% goal over medium term. If these views supported by incoming data, Fed will likley to begin to moderate pace of bond buying. Assett purchases not on a pre-set course, pace of buying contingent on Fed’s economic outlook. Fed will take efficacy and costs of bond buying into account. Rates may stay near zero for considerable ... (full story)