The Federal Open Market Committee was justified in taking the “unprecedented step” of saying it will hold rates down for another two years, according to Federal Reserve Bank of Cleveland president Sandra Pianalto.

“Our outlook could change, of course, but right now the committee anticipates that it will be at least mid-2013 before we increase our federal funds rate target. Under the circumstances, I think it made sense to take the unprecedented step of including that conditional guidance in our press statement,” she told the Community Banks Association of Ohio Friday, according to prepared text of her remarks released by the Fed.

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