Fortunately, relatively well-anchored inflationary expectations and declining oil intensity in production have served to soften the blow to the global economy so far. Single-digit inflation – and low single-digits , at that – is the norm for the overwhelming majority of countries represented here tonight.
By themselves, neither rising wages nor swelling employment rolls pose a risk to sustained economic growth. Indeed, the Federal Reserve welcomes such developments and has attempted to gauge its policy in recent years to allow the economy to realize its full, enhanced potential. In doing so, we must remain concerned with evolving shorter-run imbalances that can constrain long-run economic expansion and job growth.