Fed not thinking about rate hike

Washington

Federal Reserve Vice Chair Richard Clarida said on Wednesday that policymakers “are not even going to begin thinking” about raising interest rates until inflation hits 2 percent, comments aimed at cementing the public’s understanding of the U.S. central bank’s new approach to monetary policy. “Rates will be at the current level, which is basically zero until actually observed PCE inflation has reached 2pc,” Clarida told Bloomberg Television, referring to the Fed’s preferred measure of prices.