He added that inflation was running below the Fed's long-term target of 2% and said current monetary policy was helping to counter "incipient deflationary pressures".
Meanwhile, Russia booked a place in the final of the women's Fed Cup competition after overturning a 2-0 deficit against Slovakia in Moscow on Sunday -- becoming the first team to ever do so.
The Fed sees in that long-term outlook between 2.5 and 2.7 percent economic growth.
In a normalized GDP environment next year (not a given) nobody projects Fed funds even at 2% and 10-year Treasuries above 4%.
Meanwhile, Petra Kvitova and Lucie Safarova gave Fed Cup champions the Czech Republic a 2-0 lead over Australia after the first day of their World Group tie in Ostrava on Saturday.
In women's action, Petra Kvitova put the Czech Republic into the semifinals of Fed Cup on Sunday, as her 2-6 7-6 (7-3) 6-4 win over Samantha Stosur gave the two-time defending champions an unbeatable 3-0 lead against Australia in Prague.
Prices for the haven 10-year U.S. Treasury bond dropped sharply after Mr. Bernanke spoke about a possible time line for slowing the Fed's bond-buying, pushing yields above 2%.
Meanwhile, the Czech Republic's grip on the women's Fed Cup title slipped on Saturday after Italy took a 2-0 lead in Palermo.
The Fed aims at keeping inflation at-or-slightly-below 2%.
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Try skiing in July at the 2, 455m-high glacier Debeli Namet, fed year-round by avalanching snow.
Meanwhile, defending champions the Czech Republic took a commanding 2-0 lead in the women's Fed Cup semifinal against Italy on Saturday.
U.S. Treasury bonds also sold off on the Fed news, with the yield on the 10-year note rising above 2% for the first time since March.
With markets at a crossroads, Fed Chairman Ben Bernanke will give his second post-FOMC meeting press conference at 2:15 p.m.
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They conclude that America's potential growth rate averaged just 1.8% from 2008 to 2010, far below the 2.5% that Fed policymakers generally cite as the long-term trend.
The England striker made it 2-0 just six minutes later, finishing well after being fed in by Steed Malbranque.
With my due condolences to Fed Chairman Bernanke, the yield on the 10-year Treasury note has increased from 2.33% on October 8th to 3.29% today.
That has helped drive up long-term bond yields from 2.53% the day after the Fed's announcement to 2.8% now, precisely the opposite of what QE was meant to achieve.
Regardless, Fed presidents have said their long-term view of the jobless rate ranges from 5.2% to 6%.
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Even the 10 year Treasury at a yield of 1.50% or 1.85% or 2% looks to be a bubble since the Fed itself is acquiring two-thirds of the newly marketed government debt alongside accumulation from pension funds, insurance companies, clearing houses and family offices.
The Fed has the core PCE deflator at 2.25% to 2.5% year-over-year in the fourth quarter of 2006.
Still, the yield on the 10-year Treasury note, which rose in May amid jitters surrounding Fed policy, edged lower to 2.133%.
The FOMC also discussed its economy-based guidance on the federal funds rate, which indicated the Fed will not raise rates as long as unemployment stays above 6.5% and longer-run inflation below 2.5%.
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From there the trash is fed into three boilers that burn at 2, 000 degrees, heating water to create steam that spins a 60-megawatt turbine.
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