Fed heads won't be swayed by a little bear move

Index Declines

Europe’s VStoxx Index slipped 4.2 percent after gaining 10 percent yesterday.

The fall in equities hasn’t “affected the outlook for labor market conditions materially at this point,” Lacker said. “We linked the asset purchase programs to significant improvement in the outlook for labor market conditions. That has definitely occurred.”

The unemployment rate probably held steady last month at 6.7 percent, according to economists surveyed by Bloomberg News.

“The committee is always cognizant of global economic conditions and developments,” Lacker said at Shenandoah University, adding that his colleagues have to make policy choices focused on Fed goals for the U.S. economy. “We conduct policy to achieve price stability and maximum employment here in the United States.”

Policy makers last week left intact their forward guidance on the federal funds rate, saying it will probably “be appropriate” to hold the benchmark lending rate in a range of zero to 0.25 percent “well past the time” the unemployment rate falls below 6.5 percent, especially if inflation is forecast to remain below the Fed’s 2 percent target.

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