- Says expects rate hike later this year
- Rate-hike expectations based on continued falling unemployment, fading economic headwinds
- FOMC does not expect recent global economic, financial developments to significantly affect policy path
- Prudent to begin policy tightening 'in a timely fashion,' at gradual pace
- Much of recent inflation shortfall due to special, likely transitory factors
- Expects 2 pct inflation over next few years as temporary factors wane
- Expects PCE inflation to rebound to 1.5 pct or higher next year depending on dollar, oil
- Higher than natural employment level may be needed to reduce labor market slack
- Modest decline in unemployment below long-run level could speed return to 2 pct inflation
- Holding rates near zero too long risks abrupt tightening later on
- Expects 'quite gradual' path of policy tightening
- US economic prospects 'generally appear solid'