Inflation is under control and the Federal Reserve is exactly where it should be right now, Pimco chief economist Paul McCulley told CNBC Thursday.
"The Fed wants to be very, very patient with this economy," he said in an interview with "Closing Bell."
The central bank has held interest rates at effectively zero for over five years and has had "robust forward guidance" that it will continue to keep rates near zero. Additionally, the Fed is phasing out its quantitative easing basically on "autopilot."
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"They've also very explicitly told us there will be a considerable period between the end of QE 3 and when they actually think in terms of 'liftoff,' as it's called these days, from zero."