release, march 18, www. federalreserve. gov / newsevents / press / monetary / 20090318a. htm. for example, see board of governors of the federal reserve system ( 2011 ), “ fomc statement ”, press release, august 9, www. federalreserve. gov / newsevents / press / monetary / 20110809a. htm. bis central bankers ’ speeches funds rate at its present, exceptionally low level. specifically, it stated that near - zero rates would likely remain appropriate for a considerable time after the asset purchase program ends and “ at least as long as the unemployment rate remains above 6 - 1 / 2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the committee ’ s 2 percent longer - run goal, and longer - term inflation expectations continue to be well anchored ”. 16 it deserves emphasis that a 6 - 1 / 2 percent unemployment rate and inflation one to two years ahead that is 1 / 2 percentage point above the committee ’ s 2 percent objective are thresholds for possible action, not triggers that will necessarily prompt an immediate increase in the fomc ’ s target rate. in practical terms, it means that the committee does not expect to raise the federal funds rate as long as unemployment remains above 6 - 1 / 2 percent and inflation one to two years ahead is projected to be less than 1 / 2 percentage point above its 2 percent objective. when one of these thresholds is crossed, action is possible but not assured. moreover, these thresholds for possible action do not reflect any change in the committee ’ s longer - run goals. with respect to maximum employment, most fomc participants continue to estimate that the longer - run normal unemployment rate lies in a range of 5. 2 to 6 percent, and the committee continues to believe an inflation rate of 2 percent ( as measured by the annual change in the price index for personal consumption expenditures ) is most consistent with the federal reserve ’ s dual mandate. indeed, the committee reaffirmed these longer - run goals, first adopted in january 2012, just last month. 17 of course, our control over the economy is imperfect, and so temporary deviations from the fomc ’ s specific longer - term goals will sometimes occur. importantly, these quantitative goals are neither ceilings nor floors for inflation and unemployment, and the committee will take a balanced approach to returning both measures to their

to hold jobs have seen their hourly compensation barely keep pace with the cost of living over the past three years, while labor ’ s share of income – as measured by the percent of production by nonfinancial corporations accruing to workers as compensation – remains near the postwar low reached in 2011 ( exhibit 7 ). compared with the 7. 9 percent unemployment rate for all workers, the unemployment rate for african americans is 13. 8 percent. the unemployment rate for those without a high school diploma is 12 percent. for young people – workers 16 to 19 years old – the unemployment rate is 23. 4 percent, little changed from the end of the recession. among african americans in that age group, 38 percent of those in the labor force can ’ t find a job. another gauge of the effect that this slow recovery has had on workers is how long it is taking to find a job. at its worst point in the 1980s, the median length of unemployment for those looking for a job was 12 weeks, but the median since the great recession has averaged 20 weeks and now stands at 16 weeks. three million americans have been looking for work for one year or more ; that ’ s one - fourth of all unemployed workers, which is down from 2011 ’ s peak but far larger than was seen before the great recession. these are not just statistics to me. we know that long - term unemployment is devastating to workers and their families. longer spells of unemployment raise the risk of homelessness and have been a factor contributing to the foreclosure crisis. when you ’ re unemployed for six months or a year, it is hard to qualify for a lease, so even the option of relocating to find a job is often off the table. the toll is simply terrible on the mental and physical health of workers, on their marriages, and on their children. 9 long - term unemployment is also a great concern because it has the potential to itself become a headwind restraining the economy. individuals out of work for an extended period can become less employable as they lose the specific skills acquired in their previous jobs and also lose the habits needed to hold down any job. those out of work for a long time also tend to lose touch with former co - workers in their previous industry or occupation – contacts that can often help an unemployed worker find a job. long - term unemployment can make any worker progressively less employable, even after the economy strengthens. a factor contributing to the high level of long - term