This is because, on the one hand, there will be inflationary pressure due to the improvement in the output gap as the economy recovers; on the other hand, upward pressure from import prices, mainly energy prices, will likely wane.
At the Board, we have for some years operated a program called FedEd, which sends Fed employees into schools throughout the Washington, D.C., metropolitan area and sponsors events for students here at the Eccles Building.2 FedEd’s outreach to schools depends on the time and sacrifice of several dozen research assistants, who are typically recent college graduates who work for two or three years at the Board.