WASHINGTON, 3 March, 2021 (TON): To achieve the inflation and employment goals, the central bank needs to be patient with the easy monetary policy said a senior US Federal Reserve official on Tuesday.

"Today the economy remains far from our goals in terms of both employment and inflation, and it will take some time to achieve substantial further progress," Fed Governor Lael Brainard said while virtually addressing the Council on Foreign Relations.

"Jobs are still 10 million below the pre-Covid level, and inflation has been running below 2 per cent for years. We will need to be patient to achieve the outcomes set out in our guidance," Brainard said.

Talking about the President’s relief package, she said, "A burst of transitory inflation seems more probable than a durable shift above target in the inflation trend and an unmooring of inflation expectations to the upside."

"We have pledged to hold the policy rate in its current range until not only has inflation risen to 2 per cent but it is also on track to moderately exceed 2 per cent for some time.

"Even after economic conditions warrant liftoff, changes in the policy rate are likely to be only gradual," she added.

Noting that inflation has averaged slightly below 2 per cent for over a quarter-century, it was stressed that reaching the central bank's inflation target will require patience.