By pushing these boundaries, the Fed puts its independence at risk. Conclusion In conclusion, the U.S. economy continues to improve. Although we have not witnessed the strong bounce back from the depths of the recession that some anticipated, the recovery has been remarkably steady. Labor markets continue to heal, and their stronger-than-expected recovery should serve to underpin continued economic expansion.
Consumer balance sheets are much improved, and households have regained much of the wealth they lost during the crisis. That gives me additional confidence that the economy is now operating normally and so should monetary policy. As we normalize policy, I believe we should follow four principles.