While labor markets have made "meaningful progress" since quantitative easing began, inflation remains below the 2% target set by the Fed, and with "limited experience with asset purchases," Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto, said "it pays to be cautious."

"In my view, we have accumulated meaningful progress in labor markets since the program began; on net, employers have created about 180,000 jobs per month," Pianalto told an Ohio Housing Conference, according to prepared text released by the Fed. "At the same time, inflation has been running below the Committee's longer-run objective of 2 percent."

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