Yellen: Policy Statement Indicates Fed Can Be Patient

The transcript discusses the update in policy guidance due to the winding down of the asset purchase program. The focus has shifted to economic conditions for determining the timing of the first rate increase. Employment is rising, and the US economy is strengthening, although inflation is slightly below the 2% goal. The committee projects this gap to close over time and believes it can be patient in reducing policy accommodation, with no immediate plans to begin normalization in the next few meetings.

What factors contribute to the committee's patience in reducing policy accommodation?

What does the committee consider unlikely in the near future regarding normalization?