U.S. Fed study suggests zero-rate policy should be extended

The slow recovery in U.S. employment could be accelerated if the Federal Reserve signaled plans to keep interest rates near zero as late as 2017, according to a paper by a leading Fed researcher. However, the study doesn't necessarily presage any change in the Fed's intentions. The central bank's current target is 6.5% unemployment if inflation remains below 2.5%, and expectations are that tapering of the Fed's bond-buying program will commence early next year.

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