At the FOMC's most recent meeting, the Committee judged, based on a range of labor market indicators, that "labor market conditions improved."20 Indeed, as I noted earlier, they have improved more rapidly than the Committee had anticipated. Nevertheless, the Committee judged that underutilization of labor resources still remains significant. Given this assessment and the Committee's expectation that inflation will gradually move up toward its longer-run objective, the Committee reaffirmed its view "that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after our current asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored."21 But if progress in the labor market continues to be more rapid than anticipated by the Committee or if inflation moves up more rapidly than anticipated, resulting in faster convergence toward our dual objectives, then increases in the federal funds rate target could come sooner than the Committee currently expects and could be more rapid thereafter. Of course, if economic performance turns out to be disappointing and progress toward our goals proceeds more slowly than we expect, then the future path of interest rates likely would be more accommodative than we currently anticipate. As I have noted many times, monetary policy is not on a preset path. The Committee will be closely monitoring incoming information on the labor market and inflation in determining the appropriate stance of monetary policy.
Bullard 'sticking' with end of Q1 2015 rate hike (via CNBC)
Fed’s Plosser: May have to hike sooner than expected (via Fox Business)
Fed's Lockhart says early rate hike could hurt progress: Bloomberg Radio (Reuters, *read the full transcript at Hedge Accordingly)
(Reuters) - Atlanta Federal Reserve Bank President Dennis Lockhart warned of the risk of an early interest rate hike and said he maintained the view that mid-year 2015 was likely the best time to begin tightening monetary policy.