As the economy tightens, I expect that inflation will continue to move over time to the Committee’s 2 percent objective. If incoming data continue to support those expectations, I would see it as appropriate to continue to gradually raise the federal funds rate. Depending on the incoming data and the evolving risks, another rate increase may be appropriate fairly soon.
I would especially like to express my deep gratitude to our keynote speaker Dr. Mark Spiegel, vice president and director in the Federal Reserve Bank of San Francisco. This seminar, now in its 15th year, is held to allow the sharing of diverse experiences and ideas relevant to major monetary policy issues.