Though third-quarter GDP rose at a 5% pace, the sharpest growth since 2003, the central bank is mainly focused on full employment, one of its two mandates.
"The Fed made a lot of progress towards the full employment objective, and I think it will probably take until the end of next year until you can objectively look at the labor market and say the Fed has accomplished its mission," McCarthy said.
The other arm of the Fed's dual mandate focuses on inflation. The personal consumption expenditure price index, or PCE, is central banker's preferred inflation gauge. It rose only 1.2% in November year-over-year, compared to a 1.4% rise in October, according to data from the Bureau of Economic Analysis on Tuesday.
http://www.thestreet.com/story/12994633/1/why-the-fed-wont-raise-rates-soon-even-with-surging-economy.html
"The Fed made a lot of progress towards the full employment objective, and I think it will probably take until the end of next year until you can objectively look at the labor market and say the Fed has accomplished its mission," McCarthy said.
The other arm of the Fed's dual mandate focuses on inflation. The personal consumption expenditure price index, or PCE, is central banker's preferred inflation gauge. It rose only 1.2% in November year-over-year, compared to a 1.4% rise in October, according to data from the Bureau of Economic Analysis on Tuesday.
http://www.thestreet.com/story/12994633/1/why-the-fed-wont-raise-rates-soon-even-with-surging-economy.html
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